Finance Bill 2019-20 draft legislation

[jds 1981]

In which case they will be breaking the law with blanket determinations and will be losing highly skilled staff which is likely to impact their business. If they don't mind that then bugger them.

Bit organisations have so much skin in the game they'll go through some level of hassle.

Breaking the law how? They change working practices enough to ensure the contractor is in, or end the contract.

Anyway, won't the 'assistance' from HMRC just be a link to the cest tool?

[northernladuk]

Breaking the law how? They change working practices enough to ensure the contractor is in, or end the contract.

Anyway, won't the 'assistance' from HMRC just be a link to the cest tool?

Actually. That article has an interest point that I've been trying to point out..

Where a client assesses a role to predetermine the IR35 status of contractors.

Which is exactly what a lot of posts have been pushing recently. So a client manufacturing a status to suit the contractor they've got would also fall foul of this.

EDIT : To be fair Chaplin pulls it apart later so guess there is nothing to see here.

[jds 1981]

Only 'risk' there though is if they blanket determine outside though. And still, as I said, there's no reason a company can't align it's practices to ensure contractors are inside, or just get rid of those who have concerns.

Multiple large companies have already said blanket in, they obviously accept the reduced choice this may bring.

[northernladuk]

Only 'risk' there though is if they blanket determine outside though. And still, as I said, there's no reason a company can't align it's practices to ensure contractors are inside, or just get rid of those who have concerns.

Multiple large companies have already said blanket in, they obviously accept the reduced choice this may bring.

Only a few have and one has already climbed down. It's far too early to take what they say as gospel.

[jamesbrown]

Some commentary here:

Government publishes draft IR35 legislation for private sector off-payroll rules

[Invisiblehand]

I'm still waiting for Chaplin to make good on his claim to "Knock this one out of the ballpark."

Given the draft legislation it looks like he left his bat at home...

[jamesbrown]

I'm still waiting for Chaplin to make good on his claim to "Knock this one out of the ballpark."

Given the draft legislation it looks like he left his bat at home...

No one was ever going to change this, TBF.

Having scanned the legislation, it is interesting to see how little the amended ch 10 deviates from the existing ch 10. Most of the draft is focused on the definition and application of the small company provisions and other secondary stuff. It's basically a copy/paste of the existing PS rules, now applied to medium and large companies in the private sector.

[sal]

Just as it happened in the PS:

Smart companies will make the effort/expense to go through the process and evaluate the status of it's contractors, as a result they will get the cream of the crop next time they need resources.

"Smart" companies with deep pockets will hire MSP/SI to provide the resources at 2-3xcost and significant admin overhead.

Stupid companies will "save" effort/expense by blanket "inside IR35" for all contractors, as a result they will get the dregs of skill pool and/or pay against the odds for some decent contractors that are desperate and will jump ship as soon as they find an "outside IR35" role.

Very stupid companies will side step the issue by removing all contractors, as a result they will have to hire a huge wave of permies. Even on a good day it's hard to find decently skilled permies, imagine having to hire whole teams. As a consequence their projects and IT operations will suffer massively.

[Invisiblehand]

No one was ever going to change this, TBF.

Fully agree. Which is exactly why I didn't donate to his campaign in either time or money.

[poorautojobber]

Couple of years of carnage until clients work out they don't have much to fear let's remember they can't win a case at tribunal.


Can someone confirm this: organisation X has 2000 outside contractors on book HRMC has to take each case/contract to FTT if they disagree?

Don't we end up where we are now HMRC having to litigate 1000's of cases which they don't have the money for smoke and mirrors on their part.