Draft legislation issued in July 2019, heralds the much talked about reform to IR35 in the Private Sector. Whilst we are disappointed that these changes are being implemented and we believe all stakeholders should continue to point out the flaws in the proposals, contractors are nothing if not pragmatic so now is the time to prepare.
Guide to Demonstrating You're Outside IR35. Click here to download >>
Using a preferred supplier list (PSL) is a tried and tested way of maintaining control of your supply chain, which is vital for recruiters in today’s contractor market. With private-sector IR35 reform coming in 2021, it’s also vital to include compliance experts in your PSL.
IR35 is a hot topic among contractors these days. Of course, to some degree this has been the case since it was first implemented, and it hasn’t been out of the industry headlines since the Public-sector reform in 2017.
Up until March 2020, things were heating up, though, as Private-sector reform approached, contractors realised their IR35 status was about to be taken out of their hands, and end clients realised how much work they still had to do.
The reform of IR35 in the Private-Sector has now been delayed until April 2021, but this is no U-Turn. Unless something even more surprising happens in the next year, the reform will still go ahead. It therefore makes sense for your end clients to use this extra time to make the preparations that need to be made.
Even though it has now been delayed until April 2021, all indications are that private-sector IR35 reform is still coming. When reform does arrive, any client who doesn't class as a small private company and is hiring contractors who trade through their own limited company (PSC) will be responsible for assessing their IR35 status. This is an involved and complex process, requiring specialist expertise.
