If you are a Contractor working in the IT industry then I am sure you will already be aware of the way the UK Government is planning to apply the rules for off-payroll working from April 2020 in the private sector !
Clients and Contractors have been asking me many questions about what will happen in April 2020. I have tried to answer as many as I can and with my own well-known brand of "blunt honesty".
I have heard lots of different strategies being thrown around by clients and contractors.
Clients are saying:
- Refrain from using and end all current contract staff totally.
- Do a case by case study as to whether the role falls inside or outside IR35
- Blanket all inside IR35.
Contractors are saying:
- I expect a 40% rate rise to cover the NI.
- I would like a rise to help.
- I guess "I have to suck it up!".
- I'm going permanent.
Barclays are saying:
In an email** dated 30 September 2019, which Barclays sent from Barclays to its UK line managers for "awareness only" purposes.
- "Barclays has reviewed its third-party resourcing arrangements and has decided that it will no longer engage contractors who provide their services via a personal services company, limited company or other intermediary."
- "From 1 October 2019, Barclays will not extend the contracts of contractors who provide their services via a personal service company, limited company or other intermediary beyond February 2020".
- "From 1 January 2020, new contracts and contract extensions will be arranged on a PAYE basis only".
- Each role "should" be done on a case by case evaulation.
- Contractors falling inside IR35 will need to be paid either PAYE or via a company offering "Off Payroll PAYE" solutions.
- No-one can really predict how this will affect the contract market as a whole.
** Email picture here.