As we continue to live with and adapt to Covid19, and with the UK Govt continuing to encourage remote working, will Contractor rates be impacted?
A contractors skill set, experience and expertise forms the basis of their rate, but with heavily reduced travelling and no shopping out for lunch everyday, will end client/engagers start to push for a reduced rate? Should contractors be proactive here and reduce a rate to be more attractive in the market place, prior to IR35 in April 2021?
Could the fact that remote working is the norm encourage a stronger argument that contractors are not under the control of an end client for IR35? This was recently highlighted by PWC
HiverPath are currently working through these questions and more, with our end clients.
I haven't seen too much around the Good Work Plan and the Key Information Document (KID) that was launched in April this year...perhaps because of the massive dip in hiring.
With the economy slowly coming back, it is imperative to remember that every new temporary engagement (temp, contract and umbrella) will require a KID moving forward. KID's do not replace a contract, but outline what the minimum pay, pay frequency, deductions, examples of take home pay, who is responsible for paying you and the contract you will be on (temp, umbrella etc).
If you haven't got one and have started an engagement since April, or are about to start one, make sure you get your KID!
Despite a comprehensive review into the IR35 Off Payroll legislation by the House of Lords, which called for a redrafting of the legislation and a thorough review of the CEST (Check Employment Status for Tax) online assessment tool, HMRC and the UK Govt this week confirmed that the legislation will go ahead "as is".
Not unexpected given the consistent refusal of HMRC to review the proposed legislation. The Govt want their cake, and eat it.
Use the time now to review all your processes and practices around the engagement of contractors/independent workers in your organisation, and how to assess them moving forward - something HiverPath can help you with.
We are really pleased to launch HiverPath, a boutique consultancy focusing on all aspects of the Staffing Industry.
With over 20 years experience within the industry, and a passion for people, ethics and efficiencies, we can assist companies with multiple areas of staffing and HR. Have a look at our "What We Do" page