Are you aware of the recent change in law regarding temporary contractors? Here the team at Lawspeed, the UK's leading Law Consultancy dedicated to the recruitment industry, discuss the new tax rules…
Some of you will have heard recently about new tax rules known as IR35 relating to the use of temporary contractors, and due to apply in April 2020. Under current proposals businesses with a turnover of less than £10m, a balance sheet of £5m or fewer than 50 employees (excluded businesses) need not be concerned, but the rules should be noted by all other businesses that hire contractors.
A study conducted last year revealed that the level of vacant roles and turnover rates within the care sector are the highest they’ve ever been. One of the main factors for this is the ageing population – more people are reaching ages 85+ and are suffering from more complex health issues. The higher levels of dependability means the need for social care services is intensifying and there isn’t a large enough workforce to meet this demand.
The population of people aged over 65 is forecast to increase by 40% by 2035 and as a result, an additional 650,000 jobs will be required to meet this demand. Almost a quarter (24%) of the current workforce are aged over 55 - meaning that they are likely to retire within the next 10 years - a harsh reality that is putting more pressure on staff shortages. So why not target and utilise a younger generation?