Shout99's Review of the Year - first half of 2015

by Susie Hughes at 16:07 05/01/16 (News on Business)

Fifteen years since the difficult birth of IR35; its uncertain early steps; the troublesome reviews and revisits when it hit double figures; now its teenage years are proving a continuing battleground as contractors try to deal with the twists and turns.

The other big issue of the year was umbrellas - who were also preparing for a rainy day in 2015 as the long-threatened 'travel and subsistence' review became a reality. Here we review some of the events and developments of contractor-related legislation and policies in 2015. January 2015 IR35: The latest recommendations and review to IR35 were discounted as 'mainly rhetoric' and a 'PR plan'. The IR35 Forum was tasked with producing the report, but most of the 30 recommendations on HMRC, also a member of the IR35 Forum, dealt with raising the profile of the tax and improving accessibility to the information available. HMRC was fairly non-committal about many of the recommendations, but there was agreement to improve and increase some of the online information. IR35 recommendations and responses are mainly 'rhetoric' Umbrellas: A Government review led to a consultation document on proposed ways forward relating to travel and subsistence claims and, once again, there are concerns among the compliant umbrella companies that their business model - and 'legitimate freelancers' might be caught up in the net aimed at catching the 'rogue' operators. Freelancers could be collateral damage in clampdown on umbrella travel rules February Contractor Demand: Every cloud might have had a silver lining for some contractors. The uncertain economic climate and much corporate tightening of belts meant many organisations where reluctant to add to their permanent headcount - allowing contractors to fill the gaps with their flexibility and adaptability. Most in demand in the early part of the year were compliance specialists in the pharmaceutical and financial sector where their skills were in high demand. Section 660: A freelancer, Geoff Jones, who found himself at the centre of the legal test case for freelancers more than a decade earlier with Section 660 - the controversial married couple's business task - was back in the news. His case was featured in a BBC Today report which looked at whether there was one tax rule for 'the rich' and one for 'the poor' by highlighting his famous struggle with the tax man. Freelancer's case highlighted as HMRC 'pick on' microbusinesses March Advertisement Off payroll: An evaluation of rules designed to ensure that those working as temporary Government contractors met 'their tax obligations' found that 95 per cent of Government departments were 'broadly compliant' in ensuring that their contractors provided satisfactory assurance that their tax affairs were in order. However, two Departments - Health and Defence - were found wanting and fines of nearly £1.5 million were imposed on them. Contractors comply with off-payroll public sector rules Budget 2015: In what was to be the last Budget of the coalition, there were expectations of a clampdown on rogue umbrella companies and travel and subsistence rules. Though they were signalled, nothing was particularly clear. At the time, one positive to take from The Chancellor’s speech was his specific reference to recognising the need to protect the genuinely self-employed. But with an election only a few weeks away, it was not rime to rock the boat. See: Budget 2015. April Zero hours: The zero hours controversy was gaining ground as various political factions capitalised on the damage it could cause to vulnerable workers. Meanwhile, freelancers again thought they might be the nuts under a sledge hammer when the crackdown came. May Election: While the pre-election talk was about which party would do a deal with whom to hold the balance of powers, the Tories took the pollsters, the public and possibly themselves by surprise, and winning a clear majority. Labour was imploding and the LibDems had been wiped out. There seemed to be a blank sheet of paper waiting for Mr Cameron. Their first Queen's Speech setting out the proposed legislative changes received a cautious welcome from the freelancer community. An Enterprise Bill was aimed at helping small businesses with disputes; and an Income Tax Bill went some way with the Government's commitment to deliver a low tax environment. At the time, freelancer group IPSE said that The Government was backing business. See: GE15 and Queen's Speech 2015. But, in the second half of the year there were more concerns looming for freelancers.... Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2016

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