From early 2017 it seemed like all I did was read, listen and talk about IR35. It was great to be considered a good source for contractors and consultancies to understand what IR35 meant to them, how it may affect them and where we will try and assist them – a large part of this comes down to the incredible (and tired) legal team we have to support and guide us in the run up to legislation changes and all the obstacles that then follow.
Ultimately the purpose of the legislation is to ensure that all contractors to be ‘seen/deemed’ as employees (and treated as such) are taxed as an employee also. This sounds fair! However, and I have witnessed this, there are contractors with Limited companies who are working solely as a contractor (i.e.: able to substitute and provide their own equipment) but have been deemed ‘Inside IR35’, hopefully they will iron out the creases before extending it to a much wider audience that is the Private Sector.
How did the legislation affect you in the run-up to April?
Many of our contractors chose to leave before a final decision was made on their IR35 status, this could have been through fear or due to it being left to the last minute by their ‘employer’. Some chose to cross their fingers and hope for the best.
How has this affected you post April?
As I recently discussed with current contractors, it appears the new legislation hasn’t affected day-to-day life in the Public Sector, in fact it’s not mentioned and is very much ‘swept under the carpet’. This surprised me due to the hype and panic during March and early April.
Will the new legislation be extended to the Private Sector?
My personal thoughts, yes! I believe HMRC will bring the Private Sector in line with the Public Sector to ensure all contractors are following the same guidelines set out in the new IR35 legislation.
I look forward to reading your thoughts on the IR35 legislation that impacted the Public Sector and how it may (in my view) impact the Private Sector in the coming years.