Categories
A new poll has found that most of the UK’s self-employed individuals are seemingly unprepared for the changes to off-payroll working rules – also known as IR35 – that are set to take effect from April.Â
As reported by LondonlovesBusiness and elsewhere, a survey of more than 500 self-employed people found that only 3% of respondents believed the looming changes should go ahead as planned from Tuesday 6th April 2021.Â
Indeed, in findings that will be of interest to both self-employed individuals and many businesses making use of payroll services in Plymouth and Wellington, 44% of those polled said the Government should delay the changes. Just 3% believed that the reform should proceed in April.Â
72% of contractors affected by the new rules also said that they were yet to make any preparations ahead of the April deadline.Â
Signs of a lack of awareness of IR35 reform among contractors Â
Once the changes come into law, it will be the responsibility of businesses to ascertain the IR35 status of self-employed people working through a company.Â
Organisations impacted by the change will include all of those in the public sector, as well as medium-sized and large organisations in the private and third sectors, which will be expected to not only determine contractors’ tax status, but also ensure the payment of the right employment taxes.  Â
While not all self-employed workers will be subject to the new rules, there is concern about the extent to which many are unaware of their status, and whether and how they will be impacted by the changes.Â
Indeed, over a third (36%) of those questioned admitted they had not heard of the changes, while 31% said they were aware, but were unsure how they would potentially be impacted by them. A mere 14% of respondents stated that they were up to date with how they may be affected. 31% of those polled, however, claimed that the rule changes would not impact on them.Â
Just 32% of the research participants said they had actually taken any action so far. Many of those had either spoken to a tax adviser or researched the issue on the Internet, accounting for 11% each. Others had discussed the rule changes with HMRC (4%), while 4% had spoken to their clients, and 2% had reached out to their recruitment agency.Â
Largely negative emotions as the off-payroll reform nearsÂ
The survey participants were also quizzed on what emotions, if any, they associated with IR35. The most frequently-cited response was apathy (47%), with others mentioning confusion (27%), anxiety (18%) and stress (18%). It’s likely that many of these negative responses among respondents arose from concerns about how the reform would affect their income, with 17% stating that it would reduce their income.
Amid all of the pressures and anguish that the COVID-19 pandemic has brought to self-employed workers over this past year, it’s very understandable that many of them are feeling less than positive towards the impending off-payroll changes.Â
Nonetheless, this is all the more reason for those who are uncertain about how they may be impacted by the new rules to seek out informed advice so that they can prepare.Â
Here at TS Partners, we have in-depth knowledge of the IR35 rules and their implications for contractors and businesses alike, and can therefore provide tailored support and guidance. To learn more about our IR35 advice for self-employed workers or business payroll services in Plymouth or Wellington, please do not wait any longer to contact our professional and friendly team.Â
Latest Posts
- 28
- Jul
On 20th July, the Government announced reforms to tax reporting designed to make the returns process easier for small businesses and the self-employed.  What are the current rules? Under the…
- 20
- Jul
A new survey of managers undertaken amid the continuing relaxation of COVID-19 restrictions in England has revealed concerns among many respondents that measures designed to limit the spread of the vi…
- 7
- Jul
Another element of the UK Government’s support for companies adversely hit by the pandemic is now being eased, with the start of July bringing a reduction in the relief provided by the business rate…
- 21
- Jun
 Many observations – both positive and negative – have been made about the greatly heightened tendency towards remote working in the UK since the onset of the COVID-19 pandemic. However, one fac…
- 11
- Jun
For a long time, it was seemingly the subject of discussion that we most loved to hate – at least until the COVID-19 pandemic came along. But the fact remains that no small or medium-sized firm …
- 21
- May
Two leading industry figures have put forward a policy proposal for Chancellor of the Exchequer Rishi Sunak, reasoning that tough new rules must be imposed on dishonest umbrella company bosses to prev…
- 11
- May
Last year may have been one of the toughest years UK business has seen in living memory, but it also saw the setting of an all-time record that should serve as an encouraging sign for the future of Br…
- 23
- Apr
In another indicator that the UK’s business recovery is picking up pace, it has been reported that output across numerous sectors reached a six-month high in March. According to Bank of Scotlandâ€â€¦
- 16
- Apr
Plymouth Businesses can now apply for their Restart Grants through the Plymouth City Council website. The scheme is designed to help rate-paying non-essential businesses to reopen safely as restrictio…
- 14
- Apr
This month has seen long-anticipated new off-payroll working rules take effect, after a year of coronavirus-related delays. The reform, which kicked in from 6th April, is aimed at helping HM Revenue &…
- 23
- Mar
HMRC has made changes to holiday entitlement for casual staff on zero-hour contracts and holiday pay for zero-hour staff and staff that receive regular overtime/commission/bonus payments. UK Law state…
- 23
- Mar
The government have extended the CJRS scheme to 30th September 2021. Under CJRS rules for the period November 2020 to April 2021 employees that have been employed by the company on or before the 30th …
- 23
- Mar
According to the Financial Times, UK government officials have revealed that Chancellor of the Exchequer Rishi Sunak will not make a decision on a prospective online sales tax until the autumn. The …
- 17
- Mar
In another development that will be of little surprise to workers taking advantage of our own accountancy for contractors in Plymouth and Wellington, a new survey has revealed that half (50%) of contr…
- 8
- Mar
In last week’s Budget, the government confirmed its commitment to ensuring the UK remains a competitive place for cutting-edge research. Although the Chancellor didn’t uncover any extensive or imm…
- 5
- Mar
Chancellor Rishi Sunak has announced a £5bn Restart Grant scheme to help any small business badly impacted by Covid-19 – and support them as they get ready to reopen. The multi-billion pound pa…
- 5
- Mar
This week, the Chancellor delivered the government’s Budget for 2021. Mr Sunak announced extensions to a number of the current COVID-19 schemes, as well as additional support for individuals and bus…
- 5
- Mar
The creation of eight freeport zones across the UK has been announced in this week’s budget. While many of the freeports are situated in the North of England, Plymouth’s bid to become one of t…