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TXM Recruit covid-19, Client

With the impending IR35 legislation changes due to take place this Spring, the big question is, will these changes go ahead? Or will we see another delay? We ask the team at TXM Recruit to share their thoughts…

Last year, we saw the expected IR35 changes to the private sector postponed at the last minute, to 6th April 2021 due to the global pandemic unexpectedly impacting the lives of many. As we’re now in the third lockdown, it’s become more apparent that we won’t be returning to what we once knew as ‘normal’ for a few months yet until the vaccine is nationally rolled out. With April only a few months away, it raises the question on whether the Government will defer the changes again to help relieve some of the financial pressure businesses and contractors are experiencing.

We recently asked our LinkedIn followers to participate in a poll and share their thoughts on whether IR35 will be delayed or go ahead. Interestingly, out of 183 votes, 55% believe the pending changes will be delayed with 45% voting it will go ahead as expected.

Here’s some of the comments we received from the TXM team:

Whilst I don't believe it should go ahead this year, I think it will happen as it’s a way for the Government to start recouping some of the money they have lost during COVID.” - Adam Knight, TXM Recruit Director

“It will be tough decision for the government. They will need the revenue, but it would also be at the detriment of people’s earnings in what has already been a very tough 12 months for most. We will continue to be prepared for all our customers and contractors to be compliant should the legislation change come in April.” - Warren Barry, TXM Recruit Operations and Sales Director

“Whether we like it or not, I think this will go ahead. The Government have already shown their hand by not supporting the limited company contractors during COVID as much as other workers.” - Tracy Sinclair, TXM Group Head of People Development

“My money is on a delay until next year which in my opinion is the right thing to do but either way, we will support all our customers both clients and contractors.” - Stephen Martin, TXM Recruit Director

We also received a few insightful comments from our followers:

“In my opinion it would be a big call to go ahead with it this year, what with the government acting as guarantor for billions of pounds worth of bounce back loans, it would cost them more than what they hope to gain by enforcing the IR35 rules? We wait with bated breath.”

“If they have any sense they’ll delay it, too many contractors will have felt it this last year I for one had two months June then started again November and just got back after Xmas [it’s] been a long hard slog.”

Are we all prepared for April 2021?

Whilst many hope for a delay, it is also a concern that many may not be prepared for the pending legislation changes. James Wall, TXM Recruit’s Managing Director comments: “If we were to delay again, we are postponing the inevitable. Although there would be huge benefits to postponing the changes for businesses and contractors who have taken a massive hit over the last 12 months, we know IR35 isn’t magically going away, so it’s important businesses and contractors prepare for the inevitable.”

According to a recent article published by the Recruiter, it was alarming to see that more than 3,300 contractors who participated in a survey conducted by IR35 Shield are not ready, with 52% of in-work contractors yet to be assessed whilst 23% of in-work contractors say their client has imposed a blanket ban on using Limited Companies.

How prepared are you for the IR35 changes?

With only a few months to go, we must presume the IR35 changes will take place in April and prepare for this inevitable change. If you are one of the many who feel confused or unprepared, check out our IR35 Hub for more guidance and support.

We are also providing a free virtual consultation for clients who need assistance on the following:

  • Evaluating and determining the status of your workforce

  • Reviewing and minimising the financial impact of IR35

  • Advising on next steps to remain compliant

  • Providing guidance on managing contractor workforce

Contact us today to book your free consultation.

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