Monday, August 3, 2020

Barclays’ move to end off-payroll contracting sounds warning for IR35 employment

Barclays’s announcement that it is calling time on off-payroll contracting is a sign of the damage the changes to IR35 will do, the Association of Independent Professionals and the Self-Employed has warned.

The statement comes after Barclays announced it is ending off-payroll working entirely and shifting all its contractors onto the PAYE system. The move, it said, is to avert the financial implications of the changes to IR35 regulations coming into effect in the private sector from April next year.

In a letter to contractors, Barclays explained that instead of being liable for their employment status, it “decided it will no longer engage contractors who provide their services via a personal services company, limited company or other intermediary.”

This meant it would not extend the contracts of anyone currently working off-payroll.

IPSE’s Deputy Director of Policy, Andy Chamberlain, said: “This deeply troubling decision by Barclays is just a taste of the chaos to come when the changes to IR35 are extended to the private sector next April.

“For a long time, we at IPSE have warned the changes to IR35 will have damaging consequences for business. Decisions like this are harmful not just to the self-employed, but also to companies themselves, as they lose out on the vital flexibility and financial boost that ‘outside IR35’ contractors provide.

“We urge other businesses not to take this short-sighted and dangerous step, and urgently call on the government to halt and reconsider the changes to IR35.

“IR35 is a nightmarishly complex piece of legislation – so complex that Barclays has decided it cannot manage the risk of falling foul of it. The approach from Barclays makes a mockery of the government’s claim that the genuinely self-employed won’t be affected by the April 2020 rules.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Portfolio of Northamptonshire industrial properties snapped up in £10.4m deal

A portfolio of five industrial assets in Northamptonshire have been acquired by a £100m multi-let investment fund for a total of £10.4m. Managed by property...

Pride Park offices sold

On behalf of private clients, FHP Property Consultants has sold 12 Mallard Way, Pride Park, Derby. The property comprises a two-storey end terraced office building...

Breedon completes CEMEX acquisition

Breedon, the Leicestershire-based construction materials group, has completed its acquisition of certain assets and operations from CEMEX, as announced in January 2020. The Competition and...

A third of Midlands businesses are succeeding in the ‘new normal’ – BDO

Growth remains on the agenda in the East and West Midlands, with 80% of medium-sized businesses intending to take on more apprentices as a...

Wealth management business completes acquisition

Mattioli Woods plc, the specialist wealth management and employee benefits business, has completed the acquisition of Hurley Partners Limited, the private client adviser and...

Related news

IoD appoints Policy Voice Ambassador for the East Midlands

The IoD has appointed James Pinchbeck as Policy Voice Ambassador for the East Midlands. James is a partner with Streets Chartered Accountants, a mid-tier and...

Portfolio of Northamptonshire industrial properties snapped up in £10.4m deal

A portfolio of five industrial assets in Northamptonshire have been acquired by a £100m multi-let investment fund for a total of £10.4m. Managed by property...

Pride Park offices sold

On behalf of private clients, FHP Property Consultants has sold 12 Mallard Way, Pride Park, Derby. The property comprises a two-storey end terraced office building...

Breedon completes CEMEX acquisition

Breedon, the Leicestershire-based construction materials group, has completed its acquisition of certain assets and operations from CEMEX, as announced in January 2020. The Competition and...