KPMG UK

I have seen an internal email from the “Risk” team telling all hiring managers that the firm wants contractors to be Supervised, Directed and Controlled. The email then goes on to say, therefore, everyone is inside IR35. I have also seen the “questionnaire” hiring managers were asked to fill, a very poor misleading version of CEST tool. And based on above point you are automatically have SDC applied. Hey presto you are inside IR I heard they will use Linklaters as a 2nd or final opinion. But this is all a farce as in the background the hiring managers are told the firm doesn’t want to take the risk of outside IR35 contracts. I was given a very weak determination, I had a great appeal, but when I spoke to the IR35 review team they said 0.01% of contractors are outside. KPMG are pretending to be fair, but in moving the goalposts to suit them.

Very frustrated today to be told that I have until Monday 8th March to decide whether I will accept the RS PAYE solution or an Umbrella company when I was told I was inside on Monday this week. Very frustrated as they are just hitting me with the 20% hit in my pay regardless of the fact that I have earned them a cool million in profit over the last 5 years. Just not acceptable as they are advisors to clients and have had an extra year to figure this out property and cannot be bothered. Watch me vote with my feet even if it takes me months to get another role.

'Assessments' were made but I have heard of no one who is deemed outside irrespective of the work and days a month worked, one person I heard of is a day a month and is still deemed inside. Comments from KPMG were, we give you a laptop to work and rigorously vet you therefore you are inside IR35 scope. Resource solutions are poorly communicating and pushing hard their PAYE solution- with the deductions for holiday taken and if not use they keep. I know of someone who had that very experience last year when asked to work over Christmas break at the last minute, then told the accrued holiday for 2020 was lost!

When the original assessments were being considered I was advised that they would assess each situation on its merits. However, my understanding now is that virtually every role is now PAYE only with a very select few that are being considered outside PAYE. My role is now deemed inside IR35. Due to the current market many contractors like myself are having to accept the status quo. I understand that as auditors and working in a heavy regulated market, KPMG is choosing the position of least risk. However, what would make sense would be for KPMG to adjust the day rates. An average contractor rate is loaded with all the elements of risk that a contractor has to be absorb (sickness, pension, training, holiday, unforeseen absence, bench time) yet the rates KPMG is offering is on par with a permanent salary which comes with it all these other benefits on top of the salary. Therefore contractors are financially worse off than a permanent member of staff. However, the madness is that KPMG still wishes to retain the flexibility of a contractor workforce. It is the individual contractors that are now absorbing these risks - not government, nor KPMG.

KPMG UK offered outside ir35 contracts but I believe this is only till end of March’21

Waited all week but heard that KPMG will defer ir35 determinations and leave it to the individual contractors.

I originally posted that KPMG were taking a view on each case. However, it would appear that due to the vetting processes required at KPMG most PSCs will fail on the IR35 "right to substitute" clause which means PSCs become inside of IR35.

Contractors leaving Role based ‘assessment’ No evidence provided Not consulted

Received an email saying due to HMRC clarifications PSC's can continue working under current arrangements until 3 April 2020. Discussions with a Partner I know said, KPMG are following instructions from "end clients". If a Bank has said no PSC's in the supply chain we have to follow.

Blanket approach taken

Received a bland email from IR35 team last night, with choice to go PAYE/Umbrella by 28/2 or contract ceases. New contracts would be in force from 01/03 apparently, but how do you decide what to do when you haven't seen any terms?

Blanket inside IR35 assessments, or PAYE/brolly only. Inside IR35 only, PAYE/umbrella only, or bans on PSCs

Oh well

Blanket no PSC's being set by the recruiting agents.

Unknown please help!

At the moment KPMG seems to be taking a mature approach to the situation, particularly since they have close links to HMRC. The roles that are in jeopardy are where contractors are, to all intents & purposes, working like a permie - ie IT. In my area contractors are used to help fill resourcing gaps not filled by permanent resources or people with specialist skills and therefore KPMG seems to be offering these roles on-going. I can understand where HMRC are targeting roles that are being resourced by contractors in a bid to avoid headcount overheads/costs. If KPMG contractors work in client-facing parts of the business where the resourcing needs are client/demand-driven it would appear there is less likelihood of these roles disappearing. In these areas contractor roles are being used as they were originally intended, for the purposes intended. It's people who are essentially doing the same role in the same part of the business in the same location that are most likely under threat. I've been happy with the way KPMG and Resource Solutions have handled it so far.