During closing speeches on 17th of March, as a part of economic measures related to Coronavirus situation, the UK Government announced that IR35 for private sector will not come into effect until April 2021.

This is hugely appreciated by the contractors but the question is how much it will affect the private sector giants like banks and retailers who were offering the big chunk of contractor roles before. Most of them had followed a blanket approach earlier regarding the PSC (Personal Service Companies) and people who can only work as a self-employed (e.g. Ankara Agreement – ECAA Turkish Businessperson Visa Holders) and asked them to go either under PAYE or leave.

After the news of the IR35 being postponed, some companies may choose to re-hire contractors but since most have already moved to umbrella companies and there are other financial implications of back-stepping from those umbrella company-client agreements, many are expected to go ahead as if IR35 is in place as the changes are only deferred not cancelled.

On the other hand, even if some big companies decide to offer contractor roles for another year, the same problem will be waiting just around the corner. Self-employed contractors will need to find either small companies to work with or outside IR35 roles next year again.

If you are unsure about what options you may have, please contact us so that we can discuss the possible paths you can take and what we can offer as Startup HR Consultants.

We are currently working on several positions especially in the ‘Software Development’, maybe some would be suitable for you? Do not hesitate to drop an e-mail to info@silvertonhr.co.uk