RBS have decided to continue to take on UK contractors in a landmark decision... or have they?
On Friday it was reported that The Royal Bank of Scotland had sent out an email to their contractors reassuring them that they would continue to use contractors post April 2020 and even offering advice on how to stay outside IR35. In the wake of the decisions by other banks and finance companies like HSBC, Lloyds, Morgan Stanley and M&G Investments to stop taking UK contractors from this autumn, the RBS decision looked like a boost in confidence for the UK contractor market.
However today Contractor UK have announced that RBS are distancing themselves from this announcement and an RBS spokesperson has indeed denied that a 'pro-contractor' policy is in place at the bank, "we are currently working through the potential impacts of the legislation and we are still forming our position”, is today's official line.
Keiron Hinchliffe, Director at The Bridge IT
This conflicting news is representative of the uncertainty that surrounds IR35 for both contractors and businesses of all sizes. The market is clearly looking for reassurance, which is why the news that RBS were, ostensibly, showing confidence in contracting was so positively received by many on Friday.
We understand that the changes to IR35 in the private sector from April 2020 may seem like a daunting prospect for many end clients, however we see this as a real opportunity for businesses to review their procedures and processes, allowing for future efficiencies. Our advice is to start a full review of your contractual workforce now, to ensure your business is prepared well in advance of the changes.
We have produced an e-guide to advise end clients on what IR35 is, the factors you need to consider when determining an individual’s status and the steps you need to be taking to ensure compliance. Download the guide here. We are also running a series of informative IR35 seminars throughout the summer, please email firstname.lastname@example.org if you would be interested in attending.
What are the changes to IR35?
The rules for the taxation of those individuals providing their services through a personal service company (“PSC”) introduced under the Finance Act 2000 (more commonly known as IR35) will be changing from April 2020.
Changes to how IR35 is applied in respect to the provision of off-payroll working in the Public Sector were made in 2017. The intention is to make ‘similar’ changes for the Private Sector. One of the key changes is that the responsibility of defining the IR35 status will switch from the individual to the end client.
So, what do I do?
We strongly recommend that a full review of your contractual workforce is undertaken now, to ensure your business is prepared well in advance of the changes. Morson Group and The Bridge IT have an exclusive partnership with Champion Contractors and Weightmans LLP, both of whom specialise in dealing with agency/IR35 matters, find out more at email@example.com. Download our interactive e-book for video seminars, expert insights and guides and tips on preparing for IR35.