In our recent webinar titled "Lunchtime and Level Up," we explored the changing world of HMRC activity and updates on IR35 legislation. Hosted by Betty from Giant Group and expert panelists, Dan Haslam from Giant Group as well as Nicole Slowey and Nigel Nordone from Qdos, shared valuable insights to help businesses stay compliant in the contingent workforce environment.
" There are no shortcuts in IR35 legislation, and each engagement is assessed based on standardised tests. Examples from various professions illustrated how contractors' employment status is determined under IR35. "
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Understanding HMRC Activity:
The webinar kicked off with an overview of recent HMRC enforcement actions, particularly focusing on engagements with sole traders. Nigel talked about the risks associated with direct engagement, highlighting the potential tax implications for both end-hirers and recruitment agencies. Despite limited recent activity, Nicole highlighted the increasing awareness among clients regarding compliance with sole traders, underscoring the need for continued education and proactive measures.
Changes to off-set rules
Nigel explained upcoming changes to off-set rules, which will impact contractors' ability to claim repayment if taxes are paid directly by the end client starting April 2024. This shift could alter tax burdens and engagement strategies between contractors and end clients.
Navigating the political landscape
The discussion touched on the relationship between legislative frameworks and politics, pointing out the challenges of predicting future changes in IR35 legislation. Attendees were encouraged to stay adaptable to evolving regulatory environments. Nicole elaborated on Qdos's support for clients amidst these changes, noting education, training, and advocacy to navigate legislative challenges effectively.
Understanding sole trader engagements
Nigel clarified that there are no shortcuts in IR35 legislation, and each engagement is assessed based on standardised tests. Examples from various professions illustrated how contractors' employment status is determined under IR35.
Importance of stress testing
Dan discussed the need for thorough assessment and record-keeping to ensure compliance with IR35 legislation. Internal reviews and seeking independent advice can help mitigate risks associated with engagement decisions.
As the webinar concluded, attendees gained valuable insights into navigating HMRC activity and staying ahead of IR35 legislation updates. The session underscored the importance of proactive measures, expert consultation, and ongoing education to ensure compliance in the contingent workforce space. Stay tuned for more insightful discussions in our upcoming webinars, and don't forget to provide feedback on this session for continuous improvement. Also, if you would like to watch the recording of this webinar, please email hello@giantgroup.com.
