A leading contractor accountancy firm has launched an online forum allowing contractors to anonymously share news on how major companies are reacting to the impending IR35 reforms known as the Off-Payroll rules.
The portal reveals startling information – which has not been able to be verified by this website – about the effect the IR35 Off-Payroll rules are having on the UK contracting industry, even before they have come into effect in the private sector.
Whilst some companies appear to intend to apply the IR35 rules properly by assessing their contractors’ employment statuses on an individual basis, many major hirers of contractors appear to either be stopping hiring contractors altogether, offshoring their contract workforce or applying “blanket” inside-IR35 policies.
According to the website, all contractors at Virgin Media, Mastercard and AIG have been asked to leave by the end of March, and a substantial amount of end-clients have put in place PAYE-only policies where contractors are no longer allowed to work via their own limited companies, including major players such as IBM, HSBC and Santander Bank.
Aviva has signed a deal with Cap Gemini for all future project resource; Specsavers are using BJSS and Deloitte as an interim measure and intend to offshore their contingent workforce in the long-term. Tesco, however, will be using KPMG’s assistance to assess contractors’ statuses fairly as per IR35.
The site also reports that HMRC are currently actively seeking contractors.
15th January 2020.