With further IR35 reform just around the corner, Recruitment Grapevine takes a look at the big issues facing UK contractors and freelancers.
As of April 2020, the much-debated update to intermediaries legislation will mean that private-sector companies have additional responsibility when assessing an individual’s employment status as part of the compliance process. It’s proven to be a controversial step.
From HMRC’s perspective, they say this update is necessary to help flush out ‘hidden employees’ and ensure income tax and national insurance payments are fulfilled. HMRC has also recently stated that they will not be looking retrospectively for non-compliance, which avoids targeted campaigns concentrating on previous years.
Either way, there is an air of panic and confusion surrounding the update. Several high-profile tax cases have already been brought forward by HMRC, which leaves most contractors worried about being mis-labelled.