blog header image

Posted : 11 Oct 2019 at 13:05:46
Category: Payroll News

Share this article

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

Barclays bank

The statement comes after Barclays announced it is ending off-payroll working entirely and shifting all its contractors onto the Pay As You Earn (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 would 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.”

SIMILAR NEWS

blog header image
PAYROLL NEWS
STATUS DETERMINATION STATEMENT: OFF-PAYROLL EXPLAINER FOR APRIL 2021

The off-payroll framework is fast approaching, there are still two of the key requirements of the new IR35 legislation from April 2021 which seem to be shrouded in mystery, the main legislative obliga ...

blog header image
PAYROLL NEWS
IR35 - RISK TO CLIENT/BUSINESS

Article from Alexander Wilson LL.B. (Hons.) (Dunelm.), CTAIR35 barrister and CTA - Helping all corporations safely retain independent contractors with strong legal advice"Inside IR35" is NOT ...

blog header image
PAYROLL NEWS
HMRC INTERNAL MANUAL EMPLOYMENT STATUS MANUAL

HMRC internal manual Employment Status Manual Published: 7 March 2016 Updated: 10 February 2020 see all updates Agency and temporary workers: the agency contract and the requirement for personal ...

blog header image
PAYROLL NEWS
IR35 POLL RESULT – CONTRACTORS WILL DUMP CLIENTS ISSUING PSC BLANKET BANS

IR35 Poll ResultThe ITContractor.com IR35 poll result shows that a vast majority of UK contractors plan to dump their clients if the client issues a blanket ban on contractors who use personal service ...

blog header image
PAYROLL NEWS
HMRC PENALISED DIRECTOR INSTEAD OF COMPANY

The first tier tribunal overturned the late filing penalties of a sole director for three reasons: the wrong taxpayer was named, HMRC misapplied the law, and she had a reasonable excuse.Angela Salazar ...

blog header image
PAYROLL NEWS
IR35 REVIEW: APSCO RESPONDS

Following news that the Government has launched an eleventh-hour review of changes to off-payroll working rules in a move ‘to address any concerns from businesses and affected individu ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory