Businesses are being urged not to succumb to fearmongering surrounding changes to off-payroll working in the private sector.
And, recruiters are best placed to ensure that companies don’t lose out on the benefits of contractor workforces after April 2020.
That is according to a recent event, hosted by contractor insurance specialist Kingsbridge, and attended by IR35 experts from organisations including APSCo, EY, Larsen Howie, Robert Walters Group and SThree.
Unfortunately, big name employers including Sainsbury’s, GlaxoSmithKline and Vodafone seem to have followed the example of Barclays and HSBC, banning the use of PSC contractors throughout their organisations.
Attendees of the event unanimously agreed that HMRC’s CEST tool – even in its latest iteration – is flawed. However, it was recognised that for straightforward cases, where status determinations are very likely to fall ‘outside’, it could provide useful evidence.
During the session, experts voiced the belief that high-profile blanket bans on contractors are not reflective of the wider market, and the potential consequences of such radical steps on the UK economy – if adopted more broadly – should not be ignored.
It was suggested that big banks, in particular, could simply be trying to avoid reputational damage related to questions on tax avoidance – while also saving money by reducing their temporary labour books.
Every expert in attendance agreed that there is no reason why businesses should not continue to engage with genuine contractors: if the supply chain is engaged, and the contract is solid, any assessment will stand up to scrutiny.