Rutherford Cross recently hosted its third roundtable event aimed at the interim finance community. We were fortunate to have both Ruth Fletcher, Employment Tax Senior at Scott Moncrieff and Lesley-Anne Mitchell, Interim Finance Director present to address our audience of senior finance interim professionals.
Forging a career as a successful interim finance professional, requires more than just excellent financial skills. Lesley-Anne Mitchell shared her insight into what has helped her become a successful Interim FD, and highlighted the importance of being able to get up to speed quickly in each new role, identifying the key stakeholders within the business early on, and respecting the culture of the client that you are working for. She also stressed the importance of being proactive, highly perceptive, and approachable.
Ruth Fletcher provided some much needed advice regarding the forthcoming IR35 changes, an issue affecting all those contracting services to a company through a limited company or intermediary. Ruth explained that for PSC Workers who operate under a limited company, the ‘risk’ will shift to the payer – either the end-client, or the recruitment agency. The CEST (Check Employment Status for Tax) tool will determine whether a role sits inside IR35 or not.
The key factors which will influence whether a PSC worker is inside IR35 or not include:
- Mutuality of obligation
- Can the contractor provide a substitute?
- Is the contractor supervised or controlled?
- Is work equipment supplied?
These changes will only apply to PSC Contractors who are working in medium or large businesses, likely to be turnover of £10m+. Last month the Treasury published draft legislation confirming its intention to extend these IR35 changes to the private sector in April 2020.