HMRC announces change to the off-payroll working rules

[LetterBox]

Sorry to nitpick but aren't the two items, now in bold, a contradiction in terms?

Is it yet fair to say that the wider client estate has just thrown the towel in and, while not assessing at all - blanket or otherwise, blanket halted the use of contractors? This being only based on the greater majority of the news being one of towel throwing...

Offpayroll.org.uk is my bellwether, it cuts across sectors, skills and rates and shows a clear direction as to where the vast majority of businesses are going. Outside IR35 is dead, at least for the time being and in its current PSC form.

I think the sample size is now enough to see that only a few % wont be forced out of outside IR35 work, extrapolate this out to the remaining clients who have yet to make determination, aware that more than a few of these remaining clients I personally believe have already internally made the decision but are yet to tell the contractors on site as they have yet to agree a contingency plan just in case too many walk.

Yes, the majority of news will be negative, but this is a negative process so I don't personally see this skewing the results.

Some businesses have 3-4 weeks more to plan, and they are certainly not going to use that time to the benefit of the contracting community.

[simes]

Fair play. Many thanks.

[Finance Contractor]

Is this absolutely watertight? Or will they change their minds further down the line? The reason I ask is I need to serve notice of termination of services next Friday to avoid issues with what would have been the old rules of being paid past 5 April but don’t want to carry on now if there is any chance the client is still in charge of determination if HMRC come knocking somewhere down the line.

[Lance]

Is this absolutely watertight?

Nope. It’s not even law yet. March 11th is budget day. They they have 3 weeks to get finance bill passed through both houses.

One thing is for sure. There’s not enough time for radical changes to the draft bill.

[Finance Contractor]

Nope. It’s not even law yet. March 11th is budget day. They they have 3 weeks to get finance bill passed through both houses.

One thing is for sure. There’s not enough time for radical changes to the draft bill.

Thanks for that. Seems a bit pointless then. I’m going to have a think over the next few days but will probably give notice still for the end of Feb as even a 1% chance is too high for me.

[jamesbrown]

Is this absolutely watertight? Or will they change their minds further down the line?

FWIW, I think it’s practically watertight. It is a minor change and it is actually a simplification of the legislation. To row back would cause uproar and there would be really very little point given that the aim of the review was precisely to throw this sort of tiny bone to business. I think it’s more likely that they would suspend implementation altogether than row back on this, but that is extremely unlikely.

[pacontracting]

FWIW, I think it’s practically watertight. It is a minor change and it is actually a simplification of the legislation. To row back would cause uproar and there would be really very little point given that the aim of the review was precisely to throw this sort of tiny bone to business. I think it’s more likely that they would suspend implementation altogether than row back on this, but that is extremely unlikely.

Ironically, a lot of the banks have signed master agreements with agencies to only provide Umbrella / PAYE workers after 1st March; have they shot themselves in the foot? Will contractors get that extra month now?

[jamesbrown]

Ironically, a lot of the banks have signed master agreements with agencies to only provide Umbrella / PAYE workers after 1st March; have they shot themselves in the foot? Will contractors get that extra month now?

Probably not. Big businesses are like oil tankers. I doubt many will be reversing course. I expect this mainly offers comfort to contractors who have been given the opportunity of a few extra weeks.

The payments made basis was always stupid because it was a moving target. The cynic in me wonders if they insert these stupid clauses as a planned sop to consultation and “listening”

[Lance]

The cynic in me wonders if they insert these stupid clauses as a planned sop to consultation and “listening”

I never try to write a perfect document. People will always find fault. Let them find the obvious flaws that are easy to fix.

[BritishLad88]

I expect this mainly offers comfort to contractors who have been given the opportunity of a few extra weeks.

Yep, the ones who have already had their contract terminated for end of feb and is/have moving/moved inside will be reeling for the 1 month lost of extra money they could have gotten