IR35 is coming to the private sector
Fines, unpaid tax interest payments and HMRC investigation
The IR35 tax reform was put in place in 2017 to reduce disguised employee tax avoidance in the public sector. This saw employers/end users responsible for determining the employment status of their off-payroll workers and paying the appropriate tax. Previously, this was down to the self-employed individual often providing their services through a personal service company.
As a result a whole new administrative regime was introduced and coupled with the controversial and unreliable HMRC CEST determination guidance has led to a confusing and frustrating time for both employers and contractors.
The resulting delays and cancelled projects have cost billions of pounds and employers both in the public sector and now private sector – notably HSBC, are stopping engaging limited company contractors altogether in a bid to avoid the IR35 reform entirely.
Is this the right approach to take? To provide certainty 'using a sledgehammer to crack a nut' is certainly an option, but one that won't be right for many businesses needing a flexible, expert workforce. And with over 15% of the UK’s workforce self-employed, private sector businesses will over the next few months have their work cut preparing for IR35, and for those making mistakes with determining employment status - there will be substantial penalties and a potential visit from HMRC to look forward to.
In this unique seminar, our employment law and tax experts will combine to provide guidance
on how to manage the risks of self-employed contractors and the forthcoming changes to
IR35 regulation including:
- The differences between and employee/worker/contractor status.
- How best to avoid running into problems with employment status.
- The latest Court rulings on whether Uber drivers and others working in the gig economy are “workers”.
- The Government’s response to the Taylor Review of modern working practices.
- Changes to employment laws affecting workers which will come into force in April 2019 and 2020.
- Important new rules on IR35 tax for contractors applying to all businesses in the private sector from April 2020.
If you work in HR, Procurement, Legal or Compliance this is a must attend event.