The IT contractor market continues to go from strength to strength in 2021 despite the introduction of IR35 in the private sector and the blanket bans being imposed by end clients on limited company contractors.
The recruitment industry confirms that the more technical areas of the IT labour market are still in strong demand with contractors able to “pick and choose” temporary assignments.…
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The Home Office has been handed a £33.5million IR35 bill by HMRC after a review of its off-payroll compliance process was found to be “careless”. The tax bill was revealed in the department’s recently published 2020-2021 annual report and accounts.
The document reveals that HMRC placed the Home Office under review in 2018 following its implementation of the change to the off-payroll rules in the public sector that came into effect in 2017.…
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Check Employment Status for Tax (CEST) usage data released on 24th June reveals that 210,100 contractors have been returned an undetermined employment status.
Government data which was released in line with Freedom of Information rules, shows that between 25th November 2019 and 31st May 2021 the tool delivered the following outcomes:
| Worker Using an Intermediary | Outside off-payroll working rules (IR35) | Inside off-payroll working rules (IR35) | Undetermined | Total |
| Total | 499,974 | 308,176 | 210,100 | 1,018,250 |
The undetermined figure represents a hefty 21% of all CEST users during the timeframe.…
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With only two months to go until IR35 reform, there’s a sense of déjà vu as news of blanket assessments and limited company bans starts hitting contractor forums. While many companies who adopted these approaches a year ago did a U-turn when the reforms were delayed, many are now reverting to their original decisions.…
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As we enter 2021, economists are doing their best to predict markers for recovery despite the great uncertainty. The impact of subsequent lockdowns and Brexit will be far reaching, with PwC’s report forecasting that the UK’s unemployment rate will record its largest ever quarterly increase after the furlough scheme ends in March.…
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The growing demand for flexible workforce skills is leading to a digital revolution in the freelance and contractor economy. While sites like PeoplePerHour have catered for the freelance piecework niche, a raft of platforms are taking on the task of joining up supply and demand for independent workers on a whole new scale.…
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When it comes to contractor concerns, a recent industry poll showed that 62% view IR35 reform as a greater threat than Covid-19 and Brexit combined. This could explain the slow uptake with self-employment, despite the spate of recent redundancies. In times of economic crisis, entrepreneurship and microbusinesses have traditionally played a critical part in economic recovery, helping to establish new markets and increasing flexible access to skills.…
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With Covid-19 measures altering the way many people work, there could be a need to review contracts and working practices in relation to the key status tests. Here we take a closer look at how Covid-19 measures could impact IR35 status tests and the likely extent of their influence.…
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‘Mutuality of Obligation’ (MOO) is one of the three key tests used to determine IR35 status. Along with ‘Right of Substitution’ and ‘Supervision, Direction and Control,’ MOO is the most frequently referenced status tests in tribunal cases. This means that contractors should have a basic understanding of the test in order to ensure that it is properly worded in their contract, and observed in their daily working practice.…
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