Entirely North West

LANCASHIRE FINANCE NEWS


900 businesses across Lancashire will be hit by contractor shake-up


Shocking statistics reveal that 900 Lancashire businesses will feel the hit of new legislation for contractor workers.



900 businesses across Lancashire will be hit by contractor shake-up

The IR35 reforms will have a huge impact on public sector companies and contractors from April this year, and research by the Freelancer and Contractor Services Association (FCSA) has revealed the full extent of the new legislation.

Julia Kermode, chief executive of FCSA, said: “There will be in the region of 900 public sector organisations impacted by the changes in Lancashire, as all use contingent workers to varying degrees. These statistics include 700 schools, 9 further education colleges, 4 Universities, 7 NHS Trusts, 150 GP surgeries, the police, fire and rescue services - as well as the Council itself.

“As the trade association for professional employment services, FCSA works to support the sector and the flexible workforce. The new IR35 legislation will bring significant changes to the public sector organisations in Lancashire, and the contractors they engage. The risk is that contractors may choose to no longer work with public sector firms – so it is imperative that these companies are looking towards putting compliant solutions in place from April and are fully prepared for the changes.”

The managing director of Lancaster-based accountancy firm ICS, John Lyon, has commented on the economic impact this will have in Lancashire.  

John said: “The fact that almost 1,000 businesses across Lancashire will be affected is something that can’t be ignored. The impact of this new legislation will be huge and it is vital that public sector firms are informed of the changes and are aware of the options available to them to ensure they are compliant with the new rules regarding IR35.

"The fact that almost 1,000 businesses across Lancashire will be affected is something that cant be ignored."
John Lyon



“The way the existing legislation is applied has been reformed due to the belief that there was widespread non-compliance. The changes mean that going forward, determining IR35 status will no longer be the responsibility of the contractor, but the responsibility of the entity which pays the PSC for engagements within the public sector.”

An online tool which will help companies make a decision about IR35 status has recently gone live. However, it is likely that decision makers will proceed with caution to avoid the possibility of making the wrong call and being responsible for paying any shortfall in tax.

John added: “Businesses may see an increase in costs, as rates to contractors may see upward pressure due to these changes. But not only that, it will be difficult to attract the best resources, as returns will potentially be seen as lower in the public sector post-April.

“There also may be a shortage of resources as contractors choose not to work in the public sector, which will potentially have a huge snowball effect on the companies that currently engage contractor workers. There are of course rumours that this will begin with the public sector, before being rolled out to the private sector – therefore affecting even more business in Lancashire.”

Established in 2002, ICS provides accountancy, administration and payroll services to contractors, freelancers and small businesses across the UK. Based in Lancaster, the firm currently employs 40 local people.




DISCLAIMER: The statements, opinions, views and advice expressed in this article are those of the author/organisation and not of ENTIRELY. This article should represent information correct at the time of publication however whilst every care has been taken to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. ENTIRELY will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within this article or any information accessed through this site. The content of any organisations websites which you link to from ENTIRELY are entirely out of the control of ENTIRELY, and you proceed at your own risk. These links are provided purely for your convenience and do not imply any endorsement of or association with any products, services, content, information or materials offered by or accessible to you at the organisations site.





Get The Entirely Weekly Brief In Your Inbox


LANCASHIRE FINANCE PROFILES
MOST SHARED


Hanley & Co Chartered Accountants and Business Advisers


Hanley & Co are Chartered Accountants and Business Advisors based in Ashton-Under-Lyne, Blackpool and Manchester. We use our practical experience (gained with over twenty years in practice) to give our clients practical, positive advice throughout the year. Hanley & Co are the 'Accountants You Can Talk To'.






Greystone Financial Services

Financial Services and Investments


Greystone Financial Services is an integrated wealth management group comprising financial planning and advisory services, and in-house fund management. We are a Chartered, Top 100 IFA firm, currently managing over 1 billion of assets on behalf of our clients. Many of our advisers and Directors have been with the firm since its inception in 1989. Greystone Financial Services is an extremely stable business, having adopted the recurring incomefee based operating model as far back as 1995.






Lucas Johnson


Insolvency Practitioners with a difference - we GUARANTEE to deliver a solution to your problem. The solution will be right for you to achieve your objectives. We cover the entire North West, so wherever you are we can serve your needs.






Hallidays Chartered Accountants and Business Advisors


Hallidays Chartered Accountants and Business Advisors were established in 1843 in Manchester and now situated, since 2008, in modern, purpose built offices next to the M60, Stockport and have 60 dedicated team members.






Crowe Clark Whitehill


With an office in Manchester city centre, Crowe Clark Whitehill is a leading national firm offering audit, tax and advisory service. Michael Jayson heads up the Manchester office.






RECOMMENDED FOR YOU ON ENTIRELY FINANCE

Got some News to share? Click here.


















TFC adds Equifinance to its panel


Packager TFC Homeloans has joined forces with Equifinance, adding the lender to its second charge mortgage lender panel.The full range of Equifinance second charge mortgages is available to brokers, plus they will benefit from TFCs specialist experience and support