April 2017 saw a change in IR35 legislation with government targeting the public sector and placing the burden on public sector entities to manage IR35 – the result, almost all public sector entities disallowed the use of limited company contracting because the burden was too great. Despite numerous reports that this has come at significant cost to the public sector it appears the government are moving one step closer to rolling out reforms to the private sector as early as April 2019.
What does this mean for you as a contractor?
Hope for the best, but prepare for the worst. Post April 2019, private sector contractors may face an unwillingness by their end clients to evaluate the status of contractors, due to the perceived compliance burden and tax liability risk. We would recommend keeping an eye on legislation changes and being prepared in case legislation changes.
What about my existing contract?
Anyone with a contract that spans the period to April 2019 needs to consider what might happen by evaluating their status. If you sign a contract that crosses 6th April 2019, then you run the risk the new legislation may apply to the entire contract period and not just the period post April 2019.
We would not recommend any knee jerk reactions as the legislation has not been posted. However it helps to be prepared and we would recommend any contract extensions are done up until 31 March 2019 just in case.
We know that potential changes in legislation can be stressful. Let SAIL assist you along the way. Should you wish to discuss your contracts with us, we offer 1 annual review each year as part of your package and have an additional service fee for this should you require one sooner. Please contact one of our team members for further information.