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Contractors represent a vibrant and increasingly important part of the UK economy

Following the announcement that the Government has launched a review into the implementation of changes to the off-payroll working rules, specialist insurer, Kingsbridge Contractor Insurance, has urged recruiters and employers not to postpone their plans to prepare for incoming reforms.

On the review, Nicola Hayman, Legal Manager at Kingsbridge, commented:

“While we welcome the fact that HMRC has recognised a need to take another look at how these changes will be implemented, there is no escaping the fact that it is now too late for a thorough review of the proposed reforms.

“Furthermore, the Government’s admission that the purpose of this consultation is to make ‘sure that the implementation of these changes in April is as smooth as possible’ confirms that any delay is extremely unlikely.

“With this in mind, we are urging the businesses that we partner with to continue to prepare for incoming reforms – there simply isn’t time to wait for the outcome of the review and final legislation.

“We are encouraged by the fact that, in its latest statement, the Government reiterated that the off-payroll working rules ‘do not affect the self-employed, as only those working like employees are in scope’. We also welcome the commitment that the review will assess whether any additional support is needed to ensure that the self-employed, who are not in scope of the rules, are not impacted.

“Contractors represent a vibrant and increasingly important part of the UK economy, and this point further emphasises the fact that there is no reason why companies should be concerned about continuing to engage with this talent pool after April.

“Even when using HMRC’s own calculations, the vast majority of PSC contractors are genuinely self-employed – and recruiters should communicate this fact to any clients who may be spooked by the recent flurry of blanket bans so that they don’t consider implementing their own veto on contractors.

“In our experience, good recruiters are happy to place genuine contractors outside of IR35, and will work with clients to determine the status of these individuals, helping the client to overcome reasonable care requirements.”

- Ends

Carly Smith
BlueSky PR
T: +44 (0)1582 790 708

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