{"id":15120,"date":"2022-05-17T00:00:00","date_gmt":"2022-05-16T23:00:00","guid":{"rendered":"https:\/\/identifi-global.eu.applyflow.com\/the-damaging-impact-of-blanket-bans\/"},"modified":"2022-05-17T00:00:00","modified_gmt":"2022-05-16T23:00:00","slug":"the-damaging-impact-of-blanket-bans","status":"publish","type":"post","link":"https:\/\/www.identifiglobal.com\/news\/the-damaging-impact-of-blanket-bans\/","title":{"rendered":"The damaging impact of \u2018blanket bans\u2019"},"content":{"rendered":"<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"color: rgb(0, 0, 0); font-family: Arial; white-space: pre-wrap; font-size: 12px\">We\u2019ve now passed the one-year mark since the amended IR35 regulations were implemented.&nbsp;<\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">As a considerable amount of time has passed since then, confidence in the contract market has started to rise once more. However, we\u2019re still seeing some companies working with blanket bans on Outside IR35 contact roles.&nbsp;<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Last year, in order to meet the April deadline, many contractor-dependent organisations chose to implement a blanket ban on working with Personal Service Companies as a seemingly simple solution. As a result, contractors were forced to be engaged with a business via an umbrella company.&nbsp;<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">I can see why these companies initially chose to go down this route. It ultimately allowed them some time to understand the legislation and plan accordingly. To still be enforcing them one year on, however, seems short-sighted.&nbsp;&nbsp;<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">In fact, insisting that your contractor workforce operate on Inside IR35 roles isn\u2019t the best way to secure high-calibre contract workers at all.&nbsp;<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Contractors have now been pushed into the umbrella process, which could see businesses challenged for inaccurate determinations from experienced contractors that understand the legislation.<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Despite there being some really professional operators in the umbrella world, it still has a relatively poor reputation &#8211; and the lack of regulation in the market has created a lot of headlines recently.&nbsp;<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Contractors have been providing details of their experiences with umbrella companies over the past few months, and evidence is being shared with HM Treasury via specialist groups. When the details have been reviewed, it could make for a difficult read for the umbrella industry &#8211; but regulation is long overdue.<\/span><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-c3c8e91f-7fff-cb1b-3689-73c043f49499\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">There will always be genuine Inside IR35 contract roles, but these will have been accurately determined and will attract contractors and workers happy with this arrangement. By taking the right advice and working with suppliers who understand the contract market \u2013 and who appreciate that there are no shortcuts \u2013 you can still successfully hire for Outside IR35 roles.<\/span><\/span><\/span><\/p>\n<div>\n\t&nbsp;<\/div>\n<h2>\n\tThe result?<\/h2>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"background-color: transparent; color: rgb(0, 0, 0); font-family: Arial; white-space: pre-wrap\">We see the impact of these blanket bans and Inside IR35 roles on a daily basis. Almost every conversation we have with a contractor starts with the question, \u201cIs the role inside or outside IR35?\u201d.&nbsp;<\/span><\/p>\n<p><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-305827ac-7fff-8aca-ffac-0ca8108b6ebd\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Despite Inside roles becoming more common, we still experience around 70% of contractors refusing to work Inside IR35, so companies are now having to hire from a drastically reduced resource pool (unless the rate has been significantly increased to ensure take-home pay isn\u2019t affected &#8211; and clients aren\u2019t usually willing to do so).<\/span><\/span><\/span><\/p>\n<p><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-305827ac-7fff-8aca-ffac-0ca8108b6ebd\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">The knock-on effect is that although blanket bans or Inside IR35 roles seem to be the least risky route, they could actually be damaging your business by making it more difficult to hire contractors. This, in turn, can lead to delayed project delivery timeframes due to resource shortages.<\/span><\/span><\/span><\/p>\n<p>\n\t<br \/>\n\t<span style=\"font-size: 12px\"><span id=\"docs-internal-guid-305827ac-7fff-8aca-ffac-0ca8108b6ebd\"><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">identifi\u2019s Contract Complete<\/span><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\"> products allow you to ensure compliance across all of your contractor hires. Learn more about <\/span><span style=\"font-family: Arial; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap\">Contract Complete <\/span><a href=\"https:\/\/www.identifiglobal.com\/news\/contract-complete-e-learning-series-video-1-role-identification\/42058\/\" style=\"text-decoration-line: none\"><span style=\"font-family: Arial; color: rgb(17, 85, 204); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap\">here<\/span><\/a><font color=\"#000000\"><span style=\"white-space: pre-wrap\"><u>.<\/u><\/span><\/font><\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt\">\n\t&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We\u2019ve now passed the one-year mark since the amended IR35 regulations were implemented.&nbsp; &nbsp; As a considerable amount of time has passed since then, confidence in the contract market has started to rise once more. However, we\u2019re still seeing some companies working with blanket bans on Outside IR35 contact roles.&nbsp; &nbsp; Last year, in order&hellip;&nbsp;<a href=\"https:\/\/www.identifiglobal.com\/news\/the-damaging-impact-of-blanket-bans\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">The damaging impact of \u2018blanket bans\u2019<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":15121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[39],"tags":[],"class_list":["post-15120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news-trends"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/posts\/15120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/comments?post=15120"}],"version-history":[{"count":0,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/posts\/15120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/media\/15121"}],"wp:attachment":[{"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/media?parent=15120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/categories?post=15120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.identifiglobal.com\/af-api\/wp\/v2\/tags?post=15120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}