Budget response: CIPR publishes new IR35 resources for members
Chancellor Rishi Sunak has confirmed in today's budget that government proposals to introduce off-payroll legislation - known as IR35 - are due to be rolled out across the private sector in under 4 weeks. Today CIPR has published brand new guidance and template contracts for members working through personal services companies.
Although not announced from the despatch box, the budget confirms (on p.88) that from 6 April 2020 the off-payroll working rules are to be extended to medium and large entities in the private sector. These include third sector organisations, such as charities. This means the contractual arrangements of freelance practitioners - set up as Personal Service Companies - are changing and they may now be regarded as employees.
New member resources
CIPR has published a range of resources via this link for members:
- Member guidance - 'Freelancer Members and IR35'
- Template contracts for personal service companies to offer to clients, in versions for England and Scotland.
The existing CIPR 'client consultancy contracts' have also been updated.
We have long voiced our concerns about introducing IR35 into the private sector, particularly after such a short consultation period, but the direction of travel has been quite clear for some time now. It is now important freelance members understand how they might be affected by this new legislation. This new guidance will support members with how to navigate this and the template contracts provide a real practical resource and a genuine member benefit.
On Monday 16 March CIPR will be joining forces with the Association of Independent Professionals and the Self Employed (IPSE) and the Recruitment and Employment Confederation (REC) for an exclusive webinar for our members on the government's 2020 Budget and, specifically, what it will mean for contractors. Click here for more information.
Budget at a glance
- The budget heavily featured short term measures to mitigate the impact of COVID-19 including the announcement of statutory sick pay available to all those required to self-isolate and earlier access to benefits for the self-employed.
- Business rates for nearly 700,000 retail, leisure and hospitality firms are to be scrapped and businesses eligible for small business rates relief will be able to apply for a £3,000 cash grant.
- Entrepreneurs' Relief, designed to incetivise people to start their own businesses, was classed as "expensive, inneffective and unfair" with the lifetime limit set to be reduced from £10m to £1m.
- The Reading Tax - which adds VAT on all digital publications including ebooks, audiobooks, research journals, textbooks and educational materials, newspapers and magazines - is sert to be scrapped.
- For more detail on what is included in the budget, download it here.
About the Chartered Institute of Public Relations (CIPR)
Founded in 1948, the Chartered Institute of Public Relations (CIPR) is the Royal Chartered professional body for public relations practitioners in the UK and overseas. The CIPR is the largest membership organisation for PR practitioners outside of North America. By size of turnover and number of individually registered members, we are the leading representative body for the PR profession and industry in Europe.
The CIPR advances professionalism in public relations by making its members accountable to their employers and the public through a code of conduct and searchable public register, setting standards through training, qualifications, awards and the production of best practice and skills guidance, facilitating Continuing Professional Development (CPD), and awarding Chartered Public Relations Practitioner status (Chart.PR).