Sweeping changes to rules on using contractors within the private sector are coming into force in 2020 – and businesses are being offered advice on how to prepare and overcome widespread confusion.
Recruitment specialists Consilium Recruit are working with government advisers Brookson Legal to provide free workshops on the changes to IR35, which means that responsibility for determining whether a contractor is “inside” or “outside” will fall on the employer.
IR35 rules currently apply to public sector staff and were introduced by HMRC to crack down on people avoiding national insurance and income tax by being employed through personal service companies. The rules are now being expanded to the private sector to make sure contractors pay the same tax as employees where applicable.
Russell Tuck, Director at Consilium Recruit, said:
“Employers are going to have to make these assessments and take reasonable care when they do. The problem is, many do not have a strong understanding of the employment and tax status of their contractors and are not well-prepared for this significant legal change.
“We are therefore running these workshops on IR35 to ensure much more clarity around the topic, help minimise any financial and reputational risk, and take the worry away from employers.
“They are aimed specifically at businesses who engage contract workers. Anyone involved in the direct recruitment or onboarding of contractors, especially HR, Finance, and Purchasing professionals would benefit.”
The free two-hour workshops will take place at the company’s Stratford-upon-Avon offices with the next sessions on Thursday 16 January and Wednesday 29 January. The interactive sessions include refreshments and free parking. To sign up readers can email [email protected]
Employers including Barclays and pharmaceutical manufacturer GSK have already reportedly clamped down on contractors, telling them they will only be engaged as “on-payroll” workers from next year.