These are unchartered times we are all navigating through. The COVID-19 epidemic is creating numerous challenges and hurdles for all businesses in an uncertain environment.
Now, with lockdown in place, it’s hard to imagine when things can go back to normality.
In more positive news, last week the Chancellor set out a series of packages to support businesses through the disruption, including a Coronavirus Job Retention Scheme and deferring VAT and Income Tax payments. The Off Payroll delay is a particularly welcome relief, presenting opportunities for businesses to continue BAU and beyond:
1. Flexible resource
Now is a critical time that your business may need to look at using flexible resources.
With many becoming unable to work due to COVID-19 measures and surrounding issues such as childcare etc., it is important that businesses have a contingency plan to ensure that all critical resource gaps are filled quickly and effectively.
Using flexible resources is a great solution that businesses can lean on, as interviews are skills-based and can easily be done remotely. Additionally, the on-boarding process is very quick as no full inductions are needed, and most contractors are very used to integrating quickly – being outcome focused and working remotely.
2. Contractor/Client tax risk
If a contractor has been given an “inside” Status Determination by a client which they have not appealed, then to continue to operate as a PSC outside of IR35 puts them in an ominous situation with HMRC.
In addition, by allowing PSCs to carry on working when you have determined the role as inside could have knock on effects under legislation such as the Criminal Finances Act. This needs to be balanced with the need to remain competitive in the markets you operate in, where others are “revoking” determinations.
3. Reviewing working practices
This additional 12 months should not be taken as a “holiday” from IR35 and the “savvy” end client will be using this time wisely to review and change their working practices to position themselves for next year.
The Serocor Group is working closely with many clients to help them understand what changes can be affected to ensure that they are best-placed to engage the best talent when the legislation comes in next year.
4. Supply chain compliance
Clients compliance with the Off Payroll legislation process has highlighted a number of issues around supply chain compliance that end clients now have the opportunity to address ahead of go live next year. In particular, the liability for penalties, unpaid tax and national insurance ultimately sits with the end client – so they need to ensure that the full supply chain is compliant and financially robust, with a decisive communications strategy.
We are all geared up to support all our clients through these turbulent times. Get in touch with us if you’d like to speak to one of our experts about any of the above.