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IR35 reform for off-payroll workers – just 39 days to go! Are you ready?


IR35 reform for off-payroll workers – just 39 days to go! Are you ready?

Countdown to April 6th

39 working days …

April 6th is getting closer but there are still so many questions left unanswered around the changes agencies need to make to comply with the new IR35 reform for off-payroll workers in the public sector.  And there are also still many agencies apparently totally unprepared for the vast amount of work that needs to be undertaken to be ready for this momentous change.

There are some organisations already saying they have the solution – but how can agencies know these ‘solutions’ won’t ultimately expose them and their company to greater risk?  We have, after all, only seen a copy of the draft legislation; who knows whether there will be amends in the final version which is due next month.

Here’s some of what we don’t know (the known unknowns so to speak):

  • Will umbrella companies be the quick and easy solution for your payroll needs?
  • Will workers ask for higher pay rates to offset the Employer’s NI?
  • When will your public sector clients (the Trusts, schools, government departments) inform you of the contractors/role IR35 status?
  • When and how do the debt transfer rules kick in?
  • How many agency workers will be lost when they are assessed as inside IR35 when they haven’t been previously?

We also don’t know when we will get these answers, whether the calls for the Apprenticeship Levy will be exempt from agency or umbrella company payrolls will come to reality (which we strongly doubt) or whether this IR35 change will be rolled out to the private sector.

What we do know is that the PSC landscape is being turned on its head and agencies need to be as ready as it can be in preparation for April 6th.

As we have outlined previously, QX Ltd is able to visit agencies to help them to understand the actions they need to take now – both with their workers but also to help their staff to be prepared.  We will cover areas like:

  • Clarification of what hourly rates comprise from April 2017.
  • Payroll options 
  • Preparing agency recruitment teams to deal with worker queries – and believe us, there will be a lot!
  • Communication to workers so they are ready tool

The market is getting tougher for everyone; the majority of agencies will be affected and it is better to be prepared now than wait until the last minute because these changes are going to happen.  We are here to help to plan for the least commercial impact on their business.

For a starter – make sure all invoices for work undertaken prior to April 6th are raised and paid before that date; any payments made to your contractors after this date will come under the new legislation, irrespective of when the work was undertaken.

39 days and counting …

Trying to find a way out of the confusion? Our IR35 experts would be happy to talk to you on a call or visit your office for a chat over a cup of coffee. For any queries regarding IR35, please feel free to contact:

Pom Chakravarti: Call on 07870 678 557 or email pom.chakravarti@qxltd.com.

Kunal Shah: Call on 0758 4651087 or email kunal.shah@qxltd.com.

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