Risks to be aware of

While HMRC doesn’t have the resources to hound everyone who makes a suspicious IR35
decision, it will be enforcing the legislation, and might even make an example of a high-profile
company if it doesn’t see the industry policing itself adequately.

The changes could also affect work permit status. For example, if someone with a Tier 1
Entrepreneurial Worker Permit is switched to PAYE status, they’re likely to be unable to keep
working unless either you or the agency sponsor them as a fixed-term employee. Neither will be
easy, especially for short-term assignments.

It’s also possible that the Government will take the recommendations of the Good Work Plan on
board and adopt a 12-month tenure limit for contractors, which will cause headaches for
ongoing projects.

Educate yourself on IR35, and don’t wait till April to get a sense of whether your contractors are
likely to be inside or outside.

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