Quick Job Application

In a rush? Simply drop off your CV by clicking on the button to your right, and we'll get in contact if we have a suitable vacancy.

CV Dropoff

Will HMRC extend IR35 off-payroll regulations to private sector?

15 Nov 2017

Background: April 2017 saw HMRC introduce new legislation that meant the client would be responsible for checking a contractors IR35 status in the public sector, requiring the deduction of tax and national insurance contributions from contractors’ pay at source. Click here to read more.

When the new IR35 off-payroll regulations were being developed, there was much speculation as to whether HMRC would extend the change in legislation to the private sector. Now the financial secretary to the Treasury has confirmed that the department is considering extending the off-payroll rules to the private sector.

A focus on collecting taxes from all workers

HMRC’s treasury secretary told the Financial Times “It is not just the issue of tax that we might not be collecting that we should be collecting, it is also an issue of fairness between the public and private sector.” He went on to say that the government wouldn’t be unduly deterred by opposition from private sector employers and that since the reforms were enacted an additional 90,000 workers are now being taxed as employees.

If the Treasury extend IR35 off-payroll reforms into the private sector it would remove the current disparity between the public and private sectors. But is this a good thing?

Contractors could be forced into permanent employment

As a member of ASPCo (The Association of Professional Staffing Companies) First Recruitment Group follow developments very closely, and our representative at the association believes there is “no doubt” an extension of the regulations into the private sector will have a significant impact on the dynamics of the labour market for flexible workers.

Project focused clients could suffer

One of the key elements of this off-payroll legislation is that it shifts the responsibility for making IR35 decisions from contractor to client. That is why we feel it is important to inform our clients and contractors of these potential changes now. This will particularly affect clients who need a flexible, scaleable workforce, relying heavily on the contractor workforce.

Our hope is that HMRC aren’t so short-sighted to consider the long-term implications for businesses in an already turbulent economy, and consult properly to come up with a workable solution.

When we find out more information we will continue to keep you updated.

Source: Financial Times article https://www.ft.com/content/fc02936c-bb1b-11e7-9bfb-4a9c83ffa852

Testimonials

“We have required a number of Quality Assurance/Quality Control candidates within the Nuclear Industry. Since early 2016 First Recruitment Group have provided a number of QA/QC professionals in locations across the UK.

“We have been very pleased with both the quality of supply and the customer service demonstrated and will continue to use their professional services in the future.”

Bureau Veritas

“I have worked with First Recruitment Group as my partner of choice across a number of large and challenging Oil & Gas projects internationally over recent years.

“First are a high performing business who are built on credibility, honesty, expertise.

“As we push the frontiers of projects and move in to more and more challenging and locations, First will continue to be my partner of choice to help us deliver our projects with confidence.”

TechnipFMC

"I have had the pleasure of working with First Recruitment Group over recent years and we have formed a great working relationship. Their understanding of our exacting requirements is outstanding.

"The First team are highly experienced and knowledgeable across the recruitment spectrum and operate in the manner you would expect of a professional outfit of their stature. Their attention to detail and approach is faultless and their commitment and drive has helped our business with unique, complex and difficult recruitment requirements.

"Sarah, our Account Manager, is an incisive thinker as well as hardworking, diligent and reliable and has an extremely helpful and flexible approach to her work. This reflects in her team and with their ability to communicate at all levels in an honest and trusted consultative manner and gives us great faith in their ability to identify candidates who can help us to drive forward and achieve our business goals.

"I have no hesitation in recommending First as a recruitment partner and feel they would be worthy of selection for any engineering or manufacturing business looking for an intelligent and innovative solution."

Nuvia

“There is nothing negative about the service that we’ve received from First. Without fail they have produced positive feedback. The fact that they have placed a diverse range of skills from PA's to Engineers, just goes to show that they have the core skills, intelligence, and initiative that make them great recruiters, and preferred partners.”

Multi-Sector Client

"It’s great to work with a recruitment agency we trust. The team at First Recruitment Group are friendly and straight talking and they continue to provide an excellent service. We’re proud to still be working with them after 20 years."

Simon Carves Engineering Ltd

Read all Testimonials

Help us with our survey

Do you feel the jobs market has picked up?