80% Salary Grant, Furlough and IR35 Impact

[Paralytic]

There was an employment lawyer on the BBC News talking about the governments plan to provide workers impacted by Covid-19 with up to 80% of their pay. When asked how this would work, he said it would be managed via HMRC and likely that staff would be "furloughed" by their employers (he then went on to describe what that was).

We often read here a "I'm not an employee as employees can't be furloughed" argument to validate an outside IR35 (self) determination. I wouldn't put it past HMRC to now use this as a counter-argument in future.

[eek]

There was an employment lawyer on the BBC News talking about the governments plan to provide workers impacted by Covid-19 with up to 80% of their pay. When asked how this would work, he said it would be managed via HMRC and likely that staff would be "furloughed" by their employers (he then went on to describe what that was).

We often read here a "I'm not an employee as employees can't be furloughed" argument to validate an outside IR35 (self) determination. I wouldn't put it past HMRC to now use this as a counter-argument in future.

No the argument used is that the contractors were not required that week while permanent staff continued working - which emphasised the difference between being a contractor and a member of staff...

It's the actuality that is important for the argument not the theory

[ladymuck]

No the argument used is that the contractors were not required that week while permanent staff continued working - which emphasised the difference between being a contractor and a member of staff...

It's the actuality that is important for the argument not the theory

Agreed.

In companies now furloughing staff, I suspect the contractors will be binned as I doubt the companies will keep paying them. So, still different treatment for contractors vs employees.

[northernladuk]

Look at the dictionary definition for furlough. It mentions about employees.
Contractors aren't furloghed. I wish we would stop using the term.

[GhostofTarbera]

Look at the dictionary definition for furlough. It mentions about employees.
Contractors aren't furloghed. I wish we would stop using the term.

From an old email


Good morning

Further to the email received advising you that you are required to take two weeks unpaid leave between now and Nov. 6, 2015, we have been instructed to confirm the following days to you:

Furlough week 1 - 26/10/2015 - 30/10/2015
Furlough week 2 - 02/11/2015 - 06/11/2015

You are required to enter these non-working days as zero hours into Fieldglass when submitting your timesheets.

Please do not hesitate to contact us should you have any questions.

Pontoon Contract Labour Team for Bank of America Merrill Lynch


Sent from my iPhone using Contractor UK Forum

[northernladuk]

Unpaid leave?? What are you? An employee?

I'd have sent that back and have them rewording it saying your services are not required over those times.

[BolshieBastard]

From an old email


Good morning

Further to the email received advising you that you are required to take two weeks unpaid leave between now and Nov. 6, 2015, we have been instructed to confirm the following days to you:

Furlough week 1 - 26/10/2015 - 30/10/2015
Furlough week 2 - 02/11/2015 - 06/11/2015

You are required to enter these non-working days as zero hours into Fieldglass when submitting your timesheets.

Please do not hesitate to contact us should you have any questions.

Pontoon Contract Labour Team for Bank of America Merrill Lynch


Sent from my iPhone using Contractor UK Forum

Ah! Fieldglass, that brinks back memories!

[Paralytic]

Look at the dictionary definition for furlough. It mentions about employees.
Contractors aren't furloghed. I wish we would stop using the term.

You need to speak to clients about that I’m afraid.

[Paralytic]

No the argument used is that the contractors were not required that week while permanent staff continued working - which emphasised the difference between being a contractor and a member of staff...

It's the actuality that is important for the argument not the theory

Agreed.

In companies now furloughing staff, I suspect the contractors will be binned as I doubt the companies will keep paying them. So, still different treatment for contractors vs employees.

I agree with both, but will HMRC? We all know they pick their own version of reality.

[northernladuk]

You need to speak to clients about that I’m afraid.

Not really. We should be able to differentiate from their bad use of terminology.