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APSCo welcomes intermediary clarification in IR35 rules

by LLB Finance Reporter November 17, 2020

written by LLB Finance Reporter 17^th Nov 20 11:14 am

In response to HM Revenue & Customs’ announcement that a technical change to the off-payroll working rules will be made in the next Finance Bill.

Tania Bowers, Legal Counsel and Head of Public Policy at The Association of Professional Staffing Companies (APSCo) said, “We welcome the clarification of the definition of an intermediary as announced by HMRC. The change to the off payroll working rules provides contract professionals with the reassurance that working with a compliant umbrella company will be a safe and low risk alternative to limited company routes when IR35 is rolled out next year.

“While this is certainly good news that we have been pushing for in our capacity as co-chair of HMRC’s IR35 forum, we are continuing to stress to recruitment businesses and contractors that preparation ahead of the off-payroll rollout from 6th April 2021 is crucial.

“Staffing companies need to begin preparing for these changes now in order to ensure a smooth transition period in April next year. With the potential for challenges to determinations, recruiters need to begin working with end-clients to accurately and fairly identify a contractor’s status, if they haven’t already done so, to prevent any knock-on effect on placements next year.”