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PRO Unlimited to Help Organisations Adhere to the Latest Changes to IR35 for the Private Sector
[November 01, 2018]

PRO Unlimited to Help Organisations Adhere to the Latest Changes to IR35 for the Private Sector


PRO's compliance services provide companies with the expertise, thought leadership and best practices required to navigate through this latest regulation that impacts UK-based companies

LONDON, Nov. 1, 2018 /PRNewswire/ -- PRO Unlimited, a global innovator of contingent workforce management software and services is providing companies with guidance in wake of the latest changes to IR35 for the private sector. In the recently announced 2018 budget, the UK Chancellor confirmed plans to extend off-payroll working rules from the public sector to medium and large private companies starting in 2020.

PRO Unlimited offers solutions for contingent labor management, 1099/co-employment risk management, & third-party payroll for client-sourced contract talent.

In 2017, the Government changed aspects of the off-payroll working rules known as IR35 for public sector bodies. These changes:

  • Defined whether or not IR35 applied to the personal service company (PSC)
  • Shifted this further up the supply chain to the fee payer (the intermediary paying the PSC)
  • Outlined scenarios whereby the liability can apply to the end-user public sector body (for example, if reasonable care has not been exercised in the compliance assessment)

As of 29 October 2018, the UK Chancellor confirmed in the 2018 Budget that the public sector changes would migrate over and apply to the private sector.



The Government has considered stakeholder views and opinions during the consultation period. It confirmed the reform will not apply to the smallest 1.5 million businesses, and medium and large businesses have until April 2020 to address the changes (note the definition of a small business is yet to be published). Her Majesty's Revenue and Customs (HMRC), in responding to the consultation, have confirmed the response is not retrospective and they have no plans to carry out targeted campaigns into previous years for those individuals who suddenly find themselves under scope from April 2020.

HMRC has also committed to continue to work with industry stakeholders to improve the Check Employment Status for Tax (CEST) tool to ensure it meets the needs of the private sector. A further consultation on the detailed operation of the reform will be published in the coming months, which will in turn inform the draft Finance Bill legislation expected in the summer of 2019.


"As a result of the announcement, private sector businesses now need to understand whether they are caught by the new rules and what impact this will have on their organisation," says Chris Hughes, Senior Director, Global Services, PRO Unlimited. "Employment status is already a complex area of legislation, and as the UK Government is exempting 1.5 million small businesses from the regulation change it could lead to further complexities. Notwithstanding Brexit, it could also represent a serious threat to labour market flexibility."

Hughes added, "For those impacted companies' readiness levels, costs, access to talent and business continuity risks all need assessment in 2019, well in advance of the April 2020 go-live date. Our hope is that those affected use the additional time wisely and properly plan for the change as opposed to revisiting in 12 months' time."

PRO is a purely vendor-neutral Managed Services Programme (MSP) and Vendor Management Software (VMS) provider to the contingent workforce industry. As a purely vendor-neutral MSP, PRO is uniquely and independently positioned to provide services in such a way that truly aligns with the objectives and vision of its clients. PRO provides compliance services as a core part of its programme offerings and will be supporting its UK clients in navigating these upcoming changes by providing expertise, thought leadership and best practices.

About PRO Unlimited 
PRO Unlimited, through its purely vendor-neutral Managed Services Programme (MSP) and Vendor Management Software (VMS) solutions, helps organisations around the world address the costs, risks, and quality issues associated with managing a contingent workforce. A pioneer and innovator in the MSP and VMS space, PRO offers solutions for e-procurement and management of contingent employees, 1099/co-employment risk management, and third-party payroll for client-sourced contract talent. https://www.prounlimited.co.uk/

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