Interesting times ahead – ir35 to go?
May 24, 2010 in Contractor News, Freelancing, Industry comment, Life
So the dust has settled (for now) and our new masters are setting about making the changes they believe are necessary to improve our economy and improve our lot.
In the recently published coalition document there were probably two of three key specific Contractor related matters that come to mind:
- IR35 was mentioned along the lines of tax simplification;
- Public cuts;
- No mention of Agency Workers Regulations (AWR).
For me IR35 and tax simplicity for Contractors is all about “certainty”. As drafted, IR35 is subjective and, therefore, using the same set of facts two different views can be taken. If the legislation was clear and could provide a series of specific tests that then produced a balanced answer and that answer met a criteria level then taxpayers, advisers & HMRC would save a lot of time and certainty would be gained for all.
Cuts – I think that in the short term, public spending cuts may have an impact as certain Government department are forced to reduce temporary headcount and then permanent. Once that round is over, guess where they will probably go to then ensure key projects are then delivered?
I don’t agree with some commentators views that AWR will be removed or stopped. This is European wide legislation and therefore cannot be simply put to one side. It may get some guidance updates (welcome) but I can’t see it going!
Let’s hope the new government can address some of the issues that the flexible workforce faces as in my opinion, they are a crucial part of the UK’s recovery process.
by Rob Crossland
Stock up with tinned peaches and powdered eggs!
September 29, 2011 in AWR, Contractor News, Freelancing, Industry comment, Life, Recruiter News
It’s almost the 1st October and the end of the world is nigh! I have already sent the wife down to Morrisons to clear the shelves of tinned peaches and soup.
For those of you who have been blissfully unaware (e.g. not in recruitment or in the service industry that supports it) then 1st October sees the formal start of the Agency Workers Regulations (AWR) (and you can go here if you need the basics). In very simple terms it means a clock has started ticking, not as some might think, as precursor to doomsday but to the 12 weeks hence (24th of December!) where a vulnerable agency worker can potentially receive equal pay and conditions of a full time counterpart (if one exists). I may sound a bit cynical but the amount of work that has gone into preparing for this has been quite substantial and for the vast majority of Parasol and Clearsky users it won’t make any difference, it will be business as usual. As a very sensible and safe business we were already doing 90% of what the regulations require so most of our work has been in trying to educate and inform in a market which has very interesting views.
So the boring message is that it’s very much carry on as normal at Parasol House and Clearsky towers. We have shiny new payslips for Parasol employees and some changes in terminology but for contractors it won’t be much different. For Agencies, it’s just as dull, were open for business, a model of operation for all those interesting views and primarily a nil cost, no hassle approach to the legislation.
I suspect I will have to write some more as the dust settles in October and the first potential claims emerge (probably in Union backed environments) after December but in the meantime I shall put the peaches in the garage next to the peas that we bought in December 1999.
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