Navigated to S1E02 - Why do clients have PSC Bans / Umbrella Only policies?

S1E02 - Why do clients have PSC Bans / Umbrella Only policies?

Nov 3, 2020
22 mins

Episode Description

Are you facing a PSC ban or being pushed unfairly into an umbrella? It feels like a pretty helpless place to be, and at times, injust.

In this episode, we'll explain why companies are taking this approach to IR35 (and why it's part of HMRC's broader strategy), what may happen, and what you can do about it.

We explore that using corporates as policemen is nothing new to HMRC. They already work closely with companies such as eBay, Airbnb, Rightmove and more (including a new CGT campaign kicking off this month based on this data). Asking corporates to assist with IR35 compliance is a predictable move on their part - corporates are largely compliant and supportive with HMRC's requests.

But why are they banning PSCs, instead of making fair IR35 determinations? Is it simply because they're lazy, risk-averse or think contractors are all tax dodgers? Well, there's no simple answer and there is a LOT of factors that corporates need to consider when engaging with a contingent workforce or small service businesses. We explore some of these reasons in this episode. One thing's for sure: it's a hard choice either way.

The good news is that it won't be doom and gloom forever - we forecast that PSC bans will end, but it will vary as to how quickly this will happen. We talk through some predictions, as well as helping you consider your options should you be caught by a ban.


SHARE YOUR THOUGHTS!

What do you think? We'd love to hear from you. You can use the link below to record a voice message, which we may play on a future episode. Or, head over to inniAccounts on LinkedIn and join in the conversation.


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A quick favour: if you're enjoying these podcasts, we'd love it if you'd consider appointing us as your accountant. Here at inniAccounts, our service is built from the ground up to support IR35 best working practices - and we're founded by contractors, for contractors. We're running a deal for podcast listeners too - head to https://inni.to/podcast - thanks!


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