The rules around contract working arrangements or Off-Payroll Working rules (IR35) for the private sector look set to change from 6th April 2020, subject to Parliamentary approval.
As a project management consultancy, at Projecting we use our own permanent staff on projects, but we also use contractors to support specific projects. We have had initial guidance on the impact to our contractors who may be affected by these rule changes and who operate within a Limited Company (also known as a Personal Service Company).
While many large organisations are considering only using permanent or Fixed Term Contracts (FTCs) from April 2020, under the HMRC criteria, Projecting are out of scope of the rule changes. Therefore, Projecting will still be able to resource its projects using a mix of permanent staff and contractors, who will be able to continue to contract with us through their existing arrangements.
Further to the criteria exclusion, there are three other reasons the rules would not apply:
- Projecting are a consultancy and not a recruitment agency. We supply services, not people.
- Projecting remains solely responsible for paying its staff and suppliers. This is not the contractual responsibility of our clients.
- The contractor is contracted solely to provide a service to Projecting, they remain responsible for meeting all tax and employment obligations in regard to their Limited Company.
We would be happy to discuss this further so please get in touch if you think we can be of assistance.