• Register
Return to: Home > Comments > IR35 delay leads to U-turn on non-PSC decisions

IR35 delay leads to U-turn on non-PSC decisions

Chris Biggs, Managing Director of Theta Financial Reporting, comments on the research and whether IR35 should be scrapped completely  

The delay to the private sector IR35 roll-out has encouraged more employers to ‘get it right this time around’, with staffing companies reporting that over a third of hirers (35%) were making a U-turn on non-PSC decisions, according to Accountancy Daily. 

Research from Kingsbridge Contractor has reported that the extension has encouraged more employers to move away from HMRC’s widely criticised determination tool (CEST). While 31% of respondents revealed they were using it in the run-up to April 2020, just 18% are planning to use it this time around. Respondents further reported that the extension had provided more time to better protect the entire recruitment chain, with 71% of participants indicating that they would now only use a tool that’s backed up by insurance.

Chris Biggs, Managing Director of Theta Financial Reporting, commented on the research and on the future of IR35, "From what we have witnessed in the accounting space, many hiring companies have already adapted their practices to be compliant with the new rulings that were due to come into effect on the 1st April 2020. These companies have spent time, money and effort to be compliant, so it was unlikely that they would immediately revert back to old practices when the implementation was delayed. If these rules are scrapped, it could cause major disruption to companies that tried to be hit the initial deadline in 2020.

If off-payroll working rules are put on further hold or scrapped entirely, contractors and hiring companies will lose out, and the government needs to accept responsibility for the disruption caused. More needs to be done to lay out a transparent plan so businesses and contractors, who are already going through a turbulent period, can plan for their future." 

 

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.