What the IR35?! Podcast ? Will IR35 ever move up the priority list?
Kingsbridge’s MD Tom Wynne and Legal Manager Nikki Hayman continue their What the IR35?! podcast, joined this week by Matt Fryer, Head of Legal Services and Brookson.
It had been a busy week for IR35 in spite of the COVID-19 pandemic. The Lords published their damning review of the IR35 legislation, stating that it was riddled with problems and that wholesale reform is needed. However, the government has confirmed once again it is committed to private sector reforms launching in April 2021. Nikki adds that Kingsbridge is continuing to work under the assumption that the reforms will be going ahead next April and urges recruiters to do the same and keep the momentum going.
When Matt joins Tom and Nikki, he says that the delay to IR35 is welcome, despite the circumstances as it gives everyone in the contractor supply chain more preparation time – vital as some were really not prepared for the original 2020 launch date. He agrees with everything in the Lords report but doesn’t think it will change anything as the COVID situation makes rewriting legislation less likely, while the tax revenue it will raise will now be seen as much-needed. Unless told differently by the government, Brookson is looking to a definite April 2021 launch and is advising clients to do the same.
Matt also praises Kingsbridge’s IR35 Protect cover as it effectively takes away the tax risk from all parts of the supply chain, and says that agencies should be encouraging clients to assess their contracts using the product in order to protect themselves and everyone else who would carry risk. He says it would be prudent for all parts of the supply chain to be “singing off the same hymn sheet.”
All three agree there is still one very uncertain point, and that is when does IR35 become a priority again?
To hear about this and more, you can listen to Episode Three here.