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The Freelancer & Contractor Services Association (FCSA) has welcomed the amendments made to the reform of IR35 in the public sector published in the Finance Bill yesterday and is pleased that HMRC has listened to the trade association’s requests during the consultation period.
Reviewing the amendments:
Commenting on the changes, Julia Kermode, FCSA’s chief executive said: “The changes appear to be positive and we are pleased that HMRC has listened to FCSA’s concerns and made appropriate amendments to the Bill. It will be interesting to see how the new legislation works in practice, particularly on the onus of the public sector hirer taking reasonable care when it comes to determining status and if any public sector bodies will become the feepayer in reality. Notwithstanding, this provision is good news overall as it should avoid ‘wholesale’ approaches of hirers deeming all contractors to be inside IR35
“April 6th is only a matter of weeks away and the impact of the legislation is still going to be significant. I would like to remind HMRC that none of these IR35 changes would have been necessary if HMRC had enforced the original IR35 legislation over the last 17 years.”