Whilst the nation has been gripped by the UK’s exit from Europe over the last three years, another topic which has been hotly debated up and down the country by those in the contracting sector is the impact of the new Off-Payroll legislation, its impact on the public sector to date and the ramifications when it is rolled-out to the private sector in April 2020. We know that when the reforms hit the public sector in 2017 many public service hirers put all contractors inside IR35 to avoid any come back. Come April 2020 the same could happen.
Faced with being deemed an employee and unable to continue working through their own personal service companies (PSCs), many contractors will be prompted to consider their options. Some could choose to work through a different model, such as an umbrella, but many contractors may decide to close down their limited company and pursue alternative paths.
John Bell is a chartered accountant and insolvency practitioner who founded Clarke Bell in 1994. Over on the FCSA website, he shares his advice with FCSA members who will be facing talks with contractors in the coming months about closing down their PSCs.