Manufacturing unprepared for supply chain legal changes, warns consultancy
2 Sep 2019
Nearly two thirds of engineering, manufacturing and tech business responding to a survey say they are unprepared for new supply chain rules that come into effect in the next tax year.
Research conducted by recruitment consultancy Employment Solution suggests that 61% of respondents are not actively making changes to prepare for the IT35 tax legislation updates.
The firm’s Everybody Matters survey revealed nearly half those asked (48%) do not understand the relevant forms.
Employment Solutions MD Phil Bygrave said:
“IR35 and PSC changes are going to transform the way that people work - if businesses aren’t prepared for these changes, they will struggle to keep up with their competitors who can offer personnel the security of a business with procedure in place.
“They also run the risk of non-compliance in the eyes of HMRC, if they do not take responsibility in determining IR35 status.”
IR35 changes come into effect on 6 April 2020. Firms that use contractors will need to conduct due diligence on their supply chain and be involved in assessing any contract hiring.
Additionally, any new hires they make will need to be compliant with the legislation changes to ensure both the business and contractor are protected.
See here for the HM Revenue & Customs outline of changes.
