Thoughts surrounding governments plans for the future of IR35
After two leading newspapers reported shocking news surrounding the future of IR35, trade body ASPCo have voiced their views on this hot topic.
The article published by both the Guardian and Daily Mirror, discloses governments ministers thoughts surrounding IR35. It seems that ministers are considering all contractors working with a client for over one month must be placed onto the books.
We have seen mixed reaction from the public, with some viewing these plans as having some merit, though a 12 month period is more likely. Others have criticised the government, believing they are guilty of kite-flying, by deliberately informing the media, to allow them to review the public reaction to the proposed changes.
APSCo have suggested that the leak implies that a decision has already been made, with the view that contractors will be able to work for 1-2 months before the end client will be required to apply the SDC test. This suggestion differs from the tabloid leak, unless the implication from APSCo is that after the 1 – 2month period the contractor will automatically become an employee.
Samantha Hurley Head of External Relations and Compliance at APSCo has accused the HMRC of not leasing with the forum as discussed with the House of Lords select committee on PSC’s in a way that they said they would. Hurley claims that the APSCo has seen communications from the Financial Secretary to the Treasury, implying that the HMRC are putting together a checklist to assist IR35 customers work out if the rules apply to them. This online platform has also been described by others as an aid to assist employers, in clarifying if a worker is classified as an employee.
Nick Boles MP and Minister of skills has documented in a recent publication by the Department for Business Innovation and Skills, stated:
“The Government is committed to a labour market that is flexible, effective and fair. The flexibility of the UK’s labour market allows people to move between jobs and allows businesses to respond quickly to changing demands”
However if this was the case then the current rumours surrounding recruitment sector would not be circulating.
Until an announcement is made by the Government we do not truly know what the future for IR35 truly is. It is thought that changes could be announced during Osborne’s Autumn Budget next week, however we will just have to wait and see.