IR35 is that area which gives headache to all Contractors, Agencies and End users. No one knows they are IN or OUT of it. But as Brexit has happened, which has changed the labour market now and then. We know that in UK there is a shortage of skilful workers and due to Brexit foreign workers are not feeling secure and having their doubts about future in UK. Its gonna worse in future. Big corporate giants already have seen declining in their foreign staff commitments, So to make it more attractive to their staff Corporations have taken U turns on IR35 status of their contractors.
initially, having used the digital ESS tool to determine IR35 status, Network Rail found that none of its PSC contractors were subject to PAYE. Subsequent guidance post-April though meant they had to reverse this position. However, they were able to exempt anyone whose status had already been determined, for the length of their contract. Now, following correspondence from HMRC, Network Rail has been advised that all of its contractors, present and future (at least for the foreseeable) fall outside IR35.
In fact, almost 150 roles that the rail operator engages external workers to execute have been given the green-light that the reformed Intermediaries legislation “does not apply.
The other big organisation NHS also admitted that they have put their contractors wrongly in IR35 legislation and they have reviewed their policies for all their contractors due to number of locum doctors have quit NHS.
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