Recently, Barclays announced that they would no longer engage off-payroll employees as a direct response to IR35. Despite attracting criticism from self-employed workers, legal representatives and finance professionals from across the UK, Barclays and other major banks, including HSBC have shown no signs of backing down. Read more about that here…
Many believe that the banks have jumped the gun on making drastic IR35 preparations, in turn unnecessarily jeopardising the jobs of thousands of freelancers across the UK. The new IR35 regulations will come into effect on the 20th April next year.
In our article we looked at why the private sector was making drastic changes now, and the knock-on effect that IR35 had on the public sector, particularly the case against three prominent BBC presenters.
Speaking to Personnel Today, Phil Beardwood comments:
“The public sector’s cautious approach to IR35 by deeming entire contractor populations as inside [IR35] only created further problems, with many contractors quickly leaving their roles to pursue other assignments – and often with competitors – or pay rates increasing considerably in order to retain their services and skillsets.”
This begs the question, if it happened to the public sector, will the same happen to the private sector?
Well companies like Barclays and HSBC appear to have the answer…Yes!
As a recruitment company, both the Bridge IT and Morson have witnessed the benefits of employing a flexible and well skilled workforce. But for employers and many of our clients, IR35 has left them confused, wondering what will happen to them if they continue to engage with self employed professionals.
The new IR35 regulations state that employers will be responsible for ensuring they collect the correct National Insurance Contributions and Income Tax from their PAYE employees. That means if any off-payroll employees providing services to the company are found inside IR35, the employer could be penalised.
The Bridge IT, in partnership with Morson Group, have been working with professionals from across the legal and financial industries to shed light on the complexities, and the implications, the new IR35 regulations may have on the private sector.
For the latest IR35 news, FAQ’s, events and more visit the IR35 Portal here.