Changes to the application of the IR35 legislation that were rolled out to the Public Sector in 2017, look likely to be extended in to the Private Sector in 2019. So why do 74% of organisations believe they are not equipped to make accurate decisions to manage it?
There were a number of changes that we made very late as part of the 2017 roll-out. These changes led to some confusion around the best approach to take, with a number of organisations having to drastically alter their approach at a very late stage. If the timescales are similar for a Private Sector roll-out then organisations can’t afford to wait until the last minute and need to be able to prepare well in advance.
As referenced in our latest blog post, ‘Is IR35 the burning platform for changing how we work?‘, this change in application could drastically alter the contractor landscape and understanding how to engage and manage that landscape effectively is going to become key for organisations moving forwards. As we saw in 2017, those organisations that don’t prepare in advance could face resource shortages, drastic delays in delivering their projects and spiralling costs.
HMRC hope to achieve a solution which has clear rules of engagement for hirers, PSCs and agencies and that is also efficient to enforce. They are aiming to stop the predicted increase cost of non-compliance that has gone from £700m to £1.2b in just four years. There have been several ideas consulted on from additional regulations around record keeping to requiring businesses to secure their supply chains.
The impacts of this extended reform range from the potential of a skills shortages to inflation on pay rates or to the PSC market shrinking. There are high hopes from HMRC that the key lessons learned from the Public Sector roll out will have a positive impact on the Private Sector roll out and that these will keep problems to a minimum.
To help to ensure your business has an insight into the legislation and how to tackle the regulations, we are putting on several round-tables which aim to support across a range of areas such as potential delays in projects and across the business to keeping sight of the best talent. Our ‘IR35-Time for Action’ breakfast round table events will fully inform you on the likely impacts of IR35 as well as ways to prepare your business and the chance to converse with our team of in-house experts.
Join us for our UK round table events to discuss IR35 workforce strategy and how you can prepare for the impending reforms.
Register for one of the below events:
25th September 2018: Manchester
9th October 2018: Bristol
16th October 2018: London
13th November 2018: Birmingham