The Repeal of the new IR35 Regime: How will the Market and HMRC React?
The staffing supply chain will need to address a range of questions in a new world that may be more complex and risky.
The announcement that the new IR35 regime will be repealed from April 2023 has predictably led to many contractors assuming they can return to the good old days of worry-free contracting via a personal service company (PSC) on a tax efficient basis.
But there are other, not so predictable, implications for all involved in the staffing supply chain and, in many ways, the new world of contract staffing may be more complicated and risky than the old.
In this course, we will look at some issues to address, including HMRC's use of regimes other than IR35 to counter tax avoidance, the ease for contractors of a volume move to PSC contract models, the future of "umbrellas" and the impact of the move to PSCs on staffing companies' cashflow funding costs, what will happen in the longer term and responses to take in the meantime.
By the end of this course, you should be able to:
- Understand how the HMRC will use regimes other than IR35 to counter tax avoidance
- Identify whether or not a volume move to PSC contract models will be made easier for contractors
- Understand what will happen to umbrella companies