Can I reduce the risk of IR35 applying?
It is possible to review working arrangements for contractors before the new rules come into effect. This will require immediate action.
You could consider terminating current contracts and entering into new terms that reflect working arrangements for a self-employment arrangement.
Another possibility is encouraging contractors to abandon the PSC model and provide services under a compliant umbrella company.
In the event of a determination of employed status you should seek to enter new terms that at the very least reflect the new tax arrangements .
Related FAQs
The CMA is the government body that is responsible for protecting consumers from unfair trading practices. It has announced programme of work to investigate reports of businesses failing to respect cancellation rights during the Coronavirus pandemic.
Based on the complaints received by them from consumers, the CMA has identified three sectors of particular concern:
- Weddings and private events
- Holiday accommodation
- Nurseries and childcare providers
The CMA has expressed concern about the number of complaints that it has received about businesses seeking to retain deposits for cancelled events, undue restrictions being placed on use of vouchers provided for cancelled bookings, and payments being demanded to hold open nursery places.
The CMA has said it will prioritise investigation of these sectors, and then move on to other sectors.
Some of these can be implemented by you, some need agreement or consultation and some depend on the wording of contracts. We’ll explain more in relation to each option.
The government has also confirmed it will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser on 23 April – pledging a minimum of £20 million.
It is unlikely that an employer can place such a requirement on staff without infringing the employee’s privacy. If the employee is acting in accordance with the rules, limiting their activity would likely be considered unreasonable.
Parties still need to comply with the various Protocols that apply and will be expected to exchange information in the usual way. Court proceedings can be issued electronically.