Gitte Pedersen

It’s an open goal. Sort the flaws that plague IR35 and you stand a better chance of winning the support of contractors, along with the businesses that engage these workers. Our CEO, Seb Maley, spoke with Energy Voice, about the importance of addressing IR35 and the off-payroll rules – which could prove key in unleashing the potential of the flexible workforce. #energy #oilandgas #contracting #IR35 #offpayroll #GE2024

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No apology for my second post today on the subject of IR35, it’s important that the facts of the detrimental effect it’s had are acknowledged. My email has been sent, that’s step 1. We all need to play our part. #campaignagainstIR35

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BREAKING: Tribunal sends IR35 case back to square one after 10 years The Upper-tier tax tribunal (UT) has allowed an appeal by HMRC against a First-tier Tribunal (FTT) decision five years ago in favour of RALC Consulting Ltd, but reluctantly remitted the case back to the FTT for a fresh hearing - to examine the facts pertaining to engagements which took place 14 years ago. With RALC Consulting now looking likely to become insolvent, it is currently unknown whether the IR35 status in the case is likely ever to be resolved. Me: "The RALC case exemplifies the unintended consequences of the IR35 reforms, which have placed a heavy burden on genuine businesses and undermined the entrepreneurial spirit that drives economic growth. "The case is a stark reminder of the urgent need for greater clarity and fairness in applying IR35 rules. Until these issues are addressed, the growth and competitiveness of UK businesses will continue to be hindered by the uncertainties surrounding the IR35 and off-payroll legislation." #ir35 #offpayroll #ir35shield

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A recent IR35 investigation has found that many of HS2's contractors were, in fact, working in conditions that should have been classified as employment, meaning the correct income tax and national insurance contributions were not being paid. This has only highlighted more so the broad challenges that many large-scale project and companies are facing with IR35 compliance! Read more here 👇

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The Labour Party and Rt Hon Rachel Reeves, please take note: The plethora of research tells the true story of the damage that was caused by the introduction of the IR35 Reforms: E.g., 1. IPSE (Association of Independent Professionals and the Self-Employed) Research: - More than a third (35%) of contractors have left self-employment since the changes to IR35. - 28% of companies have reduced the number of contracts given to freelancers since the IR35 reform. - 42% of businesses reported that the IR35 reforms have had negative financial implications. 2. Kingsbridge Contractor Insurance Survey: - 70% of businesses and recruiters have seen a drop in their limited company PSC contractors since the IR35 reform. - 50% of businesses say IR35 has been the biggest obstacle to hiring contractors in the past 12 months. - 71% of contractors are looking only for outside IR35 roles over the next 6-12 months, yet these account for less than 41% of roles on offer. - 66% of contractors have said they would not even consider an inside IR35 role. - Half of the contractors in the UK have considered closing their businesses, retiring, or leaving the UK entirely due to IR35 reform. 3. Financial Impact on Contractors: - Contractors working inside IR35 saw about a 20% reduction in their take-home pay on average. - 80% of contractors working inside IR35 have seen a drop in their quarterly earnings of 30%. - A quarter of contractors reported their income dropped by more than 40%. 4. Client Perspective: - 49% of businesses stated they could not achieve their level of growth and outcomes without the help of contractors. - 28% of companies have decreased the number of contracts they have given to freelancers since the reforms. - 42% of companies reported that the IR35 reforms have had negative financial implications for their business. 5. Non-Compliance and Unintended Consequences: - 38% of contractors say their clients have not provided them with a Status Determination Statement (SDS) as required by the new rules. - Some clients have implemented blanket assessments deeming all engagements as inside IR35 or blanket bans on contractors altogether. - The reforms have led to an expansion of the umbrella company sector, raising public policy concerns. #ir35 #ukpolitics #finance #economy

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There we go… over 20 years of running this company, done. IR35 has kind of driven it away. My initial aspirations were to create a consultancy with associates, and maybe employees, but that never really materialised. It was a vehicle for my freelance services and ad hoc activities. Anyway, even though my company has now ceased to be, I have no regrets. I still have a few more years on the market, and will continue with my presence here. I’ve also got about 100 business cards left, less relevant than ever now especially since my phone number changed! #changemanagement #businesscases #5casemodel #programmemanagement #changeprogrammes #changeconsultancy #businesschange #training

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We analyse unique and intricate contractor questions and highlight the key considerations — it's part of what we do, with a focus on individual circumstances. #IR35 #contracting #limitedcompany #internationalbusiness

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Like Frank, I also often feel baffled why independent professionals viewed and treated merely as an "expensive (N+1)th employee" by the overwhelming majority of the market – instead of the strategic investment partners we truly are. Most _real_ problems I encountered throughout my career has been the direct product of the series of choices made over time at the given organization: management style, organizational structure, tech stack, workflows, funding, communication, politics, etc. The superpower of any external actor is that they are not bound by the very same rules which produces the problem in the first place. Who tries to take that away in an attempt to degrade the role into an expensive employee…well, gets exactly that, I guess – while throws away loads of value they could receive otherwise 🤷 The good news is that you may still capture all that value, even (and especially) in the current difficult market conditions. I'd love to chat and discover how I may contribute to your success too. See my profile, or DM me for details.

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Pensioners' Fuel Allowance. Everyone's getting in a right lather about it. Because it's an easy stick to beat Starmer with. The problem is - no-one's actually addressing the REAL problem. Why is the Pension so low that it needs to be topped up to stop people freezing to death? We have the lowest national pension rate in Europe. We have the highest energy prices in Europe. We have the highest food prices in Europe. We only have to fix ONE of those issues, and all those white haired grannies (and Toyah Willcox) will be safe. FFS people. Focus on the root cause of a problem.

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HMRC are looking to request more details about dividend payments taken by single director companies, in particular PSCs. Read my thought here and also my reminder of how dividends need to be agreed and taken. #knowyournumbers #3Ns #financialclarity

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