Welcome to our first ForeTwo MythBusters post! – ForeTwo Group
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Welcome to our first ForeTwo MythBusters post!

Welcome to our first ForeTwo MythBusters post!
Over the coming weeks and months, we will be covering a series of topics, all contractor related including umbrella, limited company, recruitment, legislation and more.. and if there are any topics you’d like to see featured here, let us know!

Our first topic covers the recent announcement by the new Chancellor, that the government will repeal the IR35 reforms introduced in 2017 and 2021, and what that ACTUALLY means.

The Myths:
IR35 is being scrapped / is no longer a “thing” / will no longer have an impact within the contracting world
HMRC probably won’t have the capacity to find out who has changed the way they get paid
I can have a Limited company now and not worry about any IR35 implications

Busted:
First lets deal with the biggie: IR35 IS NOT BEING SCRAPPED! Neither now or from April 2023. The legislation remains in place now and will continue to do so from April 2023.

So, what is actually changing?
From April 2023, ALL that is changing is who is responsible for determining the IR35 status. The ‘reforms’ that came into effect in 2017 (Public Sector) & 2021 (Private Sector) simply changed the responsibility for this from the contractor, to the end-hirer. This is changing back to the contractor from April 2023. That is it!

Next, HMRC won’t know will they? Well, due to Employment (agencies) Intermediary Reporting requirements, quarterly reports are submitted by recruitment agencies to HMRC. These contain the details of all workers (and related payments) on the agencies books where PAYE was not operated i.e. workers paid via an umbrella, a limited company or self-employed. So HMRC already has the info sent to them directly without having to lift a finger!
Anyone can now have a Ltd Company and not worry about IR35. Unfortunately, this is not the case, from April 2023 the same penalties and liabilities will apply if you determine your IR35 status wrongly! End-hirers should continue to manage the IR35 status decisions for all work carried out until 6th April 2023. Ignorance is not a defence!

Finally, all we’ve really got at the moment is headlines and conjecture. As a firm of contractor accountants as well as an umbrella solutions provider, we’re here to help. As the detail comes to light, we’ll put it front and centre, so watch this space from more info. In the meantime, if you want some advice or have any questions about setting up a limited company or anything related to the points raised in this article, drop us an email to enquiries@foretwogroup.co.uk or call 0808 196 9601 option 1 (this will take you through to our onboarding specialists).