EDR Launches compliant IR35 workforce solutions service
From April 2020, The UK Government will implement their IR35 payroll reforms in the private sector, putting the responsibility for PAYE and NICs on the intermediary agency/consultancy. This will affect all contractors who engage through private service companies and place a possible tax liability onto the Oil & Gas company who engage contractors through intermediaries.
These reforms have the potential to change the contracting landscape and could increase prices dramatically as intermediaries look to pass these costs onto the end client; or look to their supply base to absorb the additional financial burdens.
Edward Bowen, CEO, commented: ‘The direction of travel from the UK Government strongly suggests it does not favour people running their own private service companies. This means agencies and consultancies will have to make a seismic change in how they engage people… Ultimately, it will either penalise the end worker with lower wages and/or the clients’ rates will need to rise significantly to compensate’. Edward continues… ‘Both situations are distasteful and I’m really pleased we’re able to provide a cost effective, long term and robust solution to the problem with the launching of our new service.’
Through EDR’s head office, located in the Guernsey, Channel Islands, we now provide a fully compliant suite of ‘workforce solutions’ for clients and consultants working in the O&G sector. This includes:
Global mobility and on-boarding
Payroll, tax and foreign regulation
Compliance and risk management.