Many businesses have got used to being able to turn resources on and off by hiring contractors. Equally many contractors have found a lifestyle that suits them by working through personal service companies or PSCs. HMRC proposes to alter the way contractors are taxed and to give additional responsibilities to those who hire them from April 2020, all of which is likely to make operating with contractors more difficult and expensive.
The key point is that both sides of the contractor relationship need to be preparing now. Hirers of contractors, in particular, need to have processes in place before next April in order to be ready. Take a look at our factsheet on IR35 – Alert for contractors and hirers for some further guidance.
If you currently use contractors or work out of your own PSC you should be considering how the changes will affect you. We can offer advice in this area – contact Graham Caddock on 02074907766 or grahamcaddock@lubbockfine.co.uk.