As the new Conservative party leader takes the reigns, the country will be waiting to see which of the tax cuts and other various legislative ideas promised during the election are put into practice.
The recently published House of Commons Public Accounts Committee (PAC) report into the IR35 reforms has confirmed that the UK needs an effective tax framework to enable businesses to access the flexible workforce.
When HMRC introduced changes to the ‘off-payroll working rules’ – known as IR35 – it promised the private sector a year-long ‘soft-landing’ until April 2022. What does the end of this grace period mean for businesses in the oil and gas sector?
HMRC to go after ‘low hanging fruit’ in oil and gas sector as end of IR35 ‘soft landing’ period looms
Oil and gas firms that are not IR35 compliant could soon be hit with “penalty charges” as the ‘soft landing’ period wraps up.
As energy demands and prices recover from the pandemic, production pressure on the oil and gas industry has rapidly increased in 2021. Many companies are finding it difficult to recruit and, importantly, retain the talented professionals they rely on.
Contractors are a vital part of the workforce in the energy industry; their skills and flexibility are heavily relied upon to deliver projects on time and on budget.
The current shortage of road haulage drivers stems from a number of causes, but the least talked about is a change to the way that tax is paid by contractors. These changes to the ‘off-payroll working rules’, or IR35, were introduced to the private sector in April this year. The same changes caused chaos for contractors when they were introduced to the public sector back in 2017. So, to stop history repeating itself, what can the energy sector learn from these mistakes?
The energy industry has traditionally relied on skilled contractors for project delivery, offering an attractive route for flexible work long before many other sectors realised its benefits. But it now risks being left behind in the post-pandemic competition for talent.
The “sheer scale of disruption” sparked by changes to IR35 rules have surpassed expectations, an employment expert has said.
A government review has been launched into new tax rules expected to hit thousands of contractors across the oil and gas industry.
The oil and gas industry has welcomed the new UK government as it looks ahead to a “transformational” sector deal and braces for tax changes for thousands of contractors.
More than two-fifths (43%) of manufacturing, utilities and oil firms are relying on “gut feel” to gauge their exposure to new off-payroll working rules, a poll shows.