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Big Picture - March 2019

Paul Malley

Paul Malley | Managing Director

Thursday 28th Mar, 2019

Earlier this month we had the consultation document released for the IR35 private sector reforms. It was largely as we expected with the government generally mirroring what they did in the Public sector in 2017. It is however, clear that HMRC wants to place even more responsibility and liability on the supply chain in the private sector, then they originally did in the public sector.

There are still lots of questions that need answering, but what we do know is that there is a lot education required for agencies, end clients and contractors alike. That’s why this month, Julian, our Legal Director, gives a more detailed update on these reforms.

"It is however, clear that HMRC wants to place even more responsibility and liability on the supply chain in the private sector, then they originally did in the public sector."

We are ramping up our activity regarding educating recruitment agencies on this change so if you haven’t already done so, make sure you’re registered for our IR35 & the Private Sector Reforms webinar, which is taking place next week.

We also held our first IR35 seminar in London which was a great success, so we are doing it all again but this time in Manchester on Thursday 25th April. If you would like more details of this event please contact your Client Relationship Manager.

Given how topical this subject has been in recent times, we also have an interesting article on the difference between tax evasion, avoidance and planning. Whilst also tackling our first IR35 myth – if a client says the assignment is outside IR35, there is no risk to the agency if it pays the contractor’s PSC gross.

Related article - IR35 private sector reforms update - the consultation is out

On 5th March the consultation document was released for the private sector. The consultation was largely as expected although HMRC clearly wants to place even more responsibility and liability on the supply chain than in the public sector. As expected the start date will be April 2020 and the consultation will run until the end of May.

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