The long-promised IR35 review got underway earlier this week. However, disappointment has already shrouded the review with financial secretary to the Treasury Jesse Norman stating, ‘the purpose of this consultation is to make sure that the implementation of these [IR35] changes in April is as smooth as possible’. With speculation in the industry that the IR35 review was going to lead to more significant reform, these comments have caused quite a stir and have likely contributed to the January blues of many businesses and contractors.
Back in December 2019, we highlighted the unlikelihood of the government scrapping IR35 changes or instigating a long delay to the legislation and advised businesses to begin IR35 preparation to ensure a smooth transition. However, with many holding out hope on the government IR35 review, there is now an air of panic as businesses are left with a mere matter of months to prepare for such colossal tax legislation changes. So, what action should businesses be taking?
Although the IR35 review will only conclude in mid-February, and the government will likely announce some comments on IR35 in the budget in March, businesses cannot hold off IR35 preparation any longer.
The changes, as Jesse Norman’s comments confirm, will come into place in 2021 and HMRC will not let up for those unprepared for the changes.
To avoid HMRC investigations, and the fines that come with them, and of course as we have previously discussed, to retain their top talent, businesses need to onboard a bespoke IR35 determination/fee payer service that will mitigate risk to the whole supply chain and allow them to transition smoothly come April.
This is where Optimus Shield come in….
With our IR35 service, businesses can prepare for IR35 changes without holding out for unlikely IR35 review outcomes that will leave them with minimal time to transition smoothly. As Norman stated, the implementation of IR35 changes needs to be ‘as smooth as possible’. Make sure that applies to your businesses and your contractors by using Optimus Shield.
Find out more here or request a call back below to see how our IR35 service can help your business prepare for changes due in April 2021.
Optimus Shield is the result of heavily invested research and development to tackle the issues now facing the private sector due to changes to the IR35 legislation being rolled out in April 2021.