IR35 and Covid-19
Given the current situation regarding Covid-19 and the latest announcements regarding IR35, we wanted to update our clients on the actions we are taking regarding both matters.
We have been reaching out directly to all our clients today but wanted to reinforce the key messages here.
IR35 postponement plans
Yesterday evening (17th March) the Government announced that the reform to the off-payroll working rules will be delayed for one year from 6 April 2020 until 6 April 2021. The change was brought in to help businesses and individuals deal with the economic impact of Covid-19.
Please note that this announcement is a postponement of the reforms, not a cancellation.
In the meantime, our ongoing support to our clients remains a top priority. We are therefore engaging with our clients immediately to discuss the next steps in relation to incumbent contractors:
- We are expecting further details and clarification from HM Treasury very soon. We are also seeking advice from professional recruitment bodies such as APSCo and REC. We will of course share this information with you as soon as it is available.
- Our aim is to work in partnership with you and adjust our approach to IR35 accordingly.
- In the first instance, we are keen to understand your position on the postponement of IR35, particularly where Inside IR35 determinations have been communicated and contractors have already moved to a new engagement model (Umbrella and PAYE).
- We will continue to keep all contractors updated and reassured, as we anticipate a high number of queries in the coming days, and we will work closely with you to ensure a clear and consistent message.
- Please could you inform us of your postponement plans by replying to [email protected] and advise us of the steps you wish to take regarding your incumbent contractors by Friday 20th March. We appreciate that you may need longer to consider your approach, so we respectfully ask that you keep us updated with your internal timescales, so that we can in turn update our contractors accordingly.
We would like to take this as an opportunity to provide you with an update on our business continuity plans in relation to the Covid-19 outbreak:
- Advantage Group UK is closely monitoring the situation with regard to Covid-19 and the potential impact on our candidates, clients and employees.
- We are following all the guidelines provided by the UK Government, the NHS, and Public Health England.
- We operate a comprehensive business continuity plan, which covers many scenarios, including pandemics, and we are set up to provide all services remotely.
- We are liaising very closely with our temporary workers and have established dedicated points of contact for any concerns or queries.
- We are therefore confident that we are able to adapt our way of working to maintain service standards for our clients and we will continue to keep you updated as the situation develops.
- Finally, we would like to reassure you that, as part of the Recruit group of companies, we are financially stable and have robust plans in place to ensure that our temporary and contract workers are paid for the work they have done.
- If the current situation means that you have any risks in your supply chain, please be aware that we can support you and your suppliers via our Payroll Services model.
- Under this model, we would act as the fee payer, as we already do on a large scale for a number of major clients. This service can be agreed and set up quickly if required.
- For further information, please email Scott Siwicki, Client Solutions Director, on [email protected] or call him on 07904 046 045.
Finally, if there is anything at all that we can do to support you in this unprecedented situation, please do not hesitate to ask.