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IR35

31/10/2018
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On 29th October 2018, Philip Hammond announced in the Autumn Budget Statement that the IR35 reforms introduced into the public sector in 2017, would be extended to some areas of the private sector from 6th April 2020.

The changes that were implemented in the public sector 18 months ago, moved the responsibility for determining IR35 employment status from the Intermediary (i.e. Personal Service Company) to the Engager (the client). If the Engager deems the Worker to be within the scope of IR35 then the operation of PAYE/NIC moves from the PSC to the Fee Payer (Agency).

It is expected that the reforms announced this week for medium and large companies, will closely mirror those that are already implemented in the public sector. A consultation document is expected to be published in Spring 2019 which will outline further detail as to how the reforms will be applied in practice.

Fircroft has been a leading recruitment business for approaching 50 years, and during this time we have seen many changes in the landscape of the temporary labour market. We pride ourselves in offering innovative solutions to contractors and clients alike and we have been planning for the recently announced reforms, drawing on experiences and knowledge gained from the public-sector reform introduced in 2017.

Despite the reforms only taking effect from 2020, we believe the key to a successful and effective transition is early preparation. As we continue our planning over the coming months, we will be working in close partnership with our clients and contractor community to offer the best support and guidance possible. We will also provide news updates on our IR35 blog and further information about how we are helping our clients and contractors through this period of change.

If you have any specific questions at this stage, please contact us at IR35@fircroft.com
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