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Clients are being advised to work compliantly with the new IR35 changes and not to impose unnecessary blanket bans on working with contractors.
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The controversial IR35 reforms in the private sector have been introduced today (April 6).
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Agency trade body, APSCo, has sought to clarify some of the recent confusion around National Insurance Contribution (NICs) payment responsibilities under IR35 reforms and news of group litigations from contractors seeking to recoup fees lost through unfair deductions.
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Online private hire network, Uber, has announced that it will pay 70,000 of its UK workers minimum wage, pensions contributions and holiday pay.
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A problem of unintended consequences occurred with the new IR35 legislation when it appeared to also envelop recruitment agencies and umbrellas within its scope.
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The Supreme Court recently upheld the decision that private hire Uber drivers were 'workers' for the purposes of employment law, and were consequently entitled to workers rights and protections such as paid leave and minimum wage.
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There seems little hope of any further delays to the introduction of the new regulations on IR35 in April 2021.
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HMRC has lost a high-profile IR35 case appeal at the Upper Tier Tribunal involving television presenter Kaye Adams.
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HMRC has issued new guidance that informs businesses of the tax office’s ‘compliance principles’ with regards to the April 6 roll out of IR35 reform in the private sector.
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In this article, contractor law firm, Lawspeed, considers some specific issues surrounding engagements and, in particular, where contractors are paid on an hour/day rate basis.
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