When the IR35 train pulls in!
(written and posted prior to lock-down & IR35 reversal)
I’m just going to ‘call it’ right now and say I really didn’t see this coming! I mean I knew the IR35 liability shift was coming to the private sector and I had planned for that making sure we were watertight to demonstrate how and why projects were outside of IR35 of course. But who knew that so many businesses were going to make these ‘policy decisions’ (not to be confused with blanket decisions, which is what HMRC is advising against!) not to use PSC’s or Limited Company Contractors?
I’ve written about it a lot and it’s not that exciting a subject so let’s not go into the technicalities of what IR35 is – because what it is technically bears no relation to how many businesses are reacting – its absolute pandemonium!
Don’t get me wrong, I’m not being flippant about IR35 here – because it’s a real issue and a real concern for pretty much all the contractors I am supporting, but its not an issue because of what it is, it’s an issue because of how companies are reacting.
So, when the market reacts so adversely what can you do? You change! You change and you adapt!
I still believe that the majority of the big corporates – typically the big banks, law firms and more risk averse sectors – are being short sighted and will have to reverse these decisions for the sake of keeping their programmes and projects on track, but for now let’s be clear on what options are available for hiring managers and contractors:
If you must go INSIDE IR35 The Project Bench can offer:
- PSC Deductions
- Umbrella (via an FCSA accredited PSL)
- Fixed Term Contracts
For all contracts OUTSIDE IR35 The Project Bench can offer:
- Statement of Work agreements (SoW)
- Time & Materials Timesheets with SDS evidence (Status Determination Statements)
Wherever I can I am encouraging all businesses to take reasonable care to make correct determinations about the type of contractor they need but I accept that neither myself, the contractor or the end client (hiring manager) can always influence that – so whilst we need them, here are your options!
To discuss any of these options in more detail and how The Project Bench can help you please contact email@example.com or call 0333 123 2823