Considering, even with the leap year, it’s the shortest month of the year, February 2020 has managed to fit a lot in; HM Treasury released their review of the changes to the off-payroll working rules, the UK has left the EU and we’ve got a new Chancellor of the Exchequer…
Below we’ve rounded up some of the most prominent recruiter-focused news of the last month so that you can keep up to date all in one place.
Following their review of the changes to the off-payroll working rules, HM Treasury released their report and conclusions on the 27th February.
72% of contractors believe private companies will be denied access to vital skills following the April 2020 IR35 reforms*
We shared some of the results from our most recent contractor survey including what our respondents think about the upcoming IR35 reforms.
On the 7th February, just eight weeks prior to the reforms, HMRC announced a change to the off-payroll working rules aiming to give businesses more time to prepare. The change relates to the operation of IR35 in that the rules will only apply to payments made for services provided on or after the 6th April. Previously, the rules will have been applied to payments after the 6th April, regardless of when the work was conducted.
On the 14th February, Sajid David resigned as chancellor and was replaced by Rishi Sunak, who was Chief Secretary to the Treasury. Despite some concerns, it has since been announced that the budget will still be delivered on the 11th March.
On the 19th February, the UK Government announced details of a new points-based immigration system. A 10 page briefing document was released outlining the new policy, which aims to end free movement and introduce an Immigration Bill. The document outlines that there will be no route for self-employed people coming into the UK.
The Lords Select Committee met on the 10th and again on the 24th February to hear evidence from representatives from the accountancy and tax world to inform their enquiry into the off-payroll reforms. Key themes of discussion were around tax avoidance schemes and umbrella company compliance.
UK Jobs Market has Grown
Some positive news as REC have reported that confidence in the economy has increased following the December election as ONS figures show that the jobs market has grown with nearly 33 million people in work.
Get in touch with Parasol
If you have queries about any of the news we’ve shared or are wondering how it may impact you as a recruiter, get in touch with us or speak to your account manager.
* Update: at the time this article was written, the off-payroll (IR35) reforms were due to be implemented on the 6th April 2020. On the 17th March 2020, the UK government announced that it would be deferring the reforms to the 6th April 2021 to help businesses and individuals during the COVID-19 crisis.