Looking at many of the comments in the thread about Onshore Employment Intermediaries - False Self-Employment, it seems to me that a lot of contractors are burying their heads in the sand and saying this HMRC legislation won't apply to us contractors, or to PSCs, or to Me..... At the end of the day it won't matter what HMRC intend on this, it's the way agencies will see it - I think they will feel threatened (and I think justifiably so), and either start payrolls or (if the legislation allows) demand contractors pay themselves through a payroll.
On the other hand, the PCG's approach seems to be to fight HMRC whenever and wherever; they appear to be stuck in this mind set. Fighting HMRC, however, is a battle that eventually cannot be won - the opponent can just bring out new legislation at will!
We need a new approach. It needs contractor recruitment agencies to take one very simple initiative, in order to avoid possible tax and NI bills later.
The critical identifying mark of a contractor (the one still recognised in these new proposed False Self-Employment rules) is the existence of Control. All the agencies need to do is tell their clients, "We will supply you with contractors, but you must not attempt to control them..." - and then the agency should list the various factors that constitute control, and impress on the client that they must avoid such acts at all costs, and give written terms to the contractor that make it clear - a simple email is all that is needed for that. IR35 can be extremely onerous for the client as well, if they are required to provide evidence for a contractor enquiry.
After all, agencies are supposed to be intermediaries. Let's see them do some mediating!
On the other hand, the PCG's approach seems to be to fight HMRC whenever and wherever; they appear to be stuck in this mind set. Fighting HMRC, however, is a battle that eventually cannot be won - the opponent can just bring out new legislation at will!
We need a new approach. It needs contractor recruitment agencies to take one very simple initiative, in order to avoid possible tax and NI bills later.
The critical identifying mark of a contractor (the one still recognised in these new proposed False Self-Employment rules) is the existence of Control. All the agencies need to do is tell their clients, "We will supply you with contractors, but you must not attempt to control them..." - and then the agency should list the various factors that constitute control, and impress on the client that they must avoid such acts at all costs, and give written terms to the contractor that make it clear - a simple email is all that is needed for that. IR35 can be extremely onerous for the client as well, if they are required to provide evidence for a contractor enquiry.
After all, agencies are supposed to be intermediaries. Let's see them do some mediating!
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