Tescobank has become the latest financial services company to announce their plans in light off the proposed Off-Payroll Extension next April.
Tescobank are currently in a holding pattern while they assess the options for managing off-payroll resource, but in the meantime:
Any new contracts and contract extensions can be offered but are limited to the end of March 2020
For existing contracts which have an end date beyond March 2020, Tescobank will expect on 1st April 2020 that the contract is inside IR35 and treat it accordingly.
Crucially, there will be no rate adjustment.
So, that looks like another inside blanket decision. However, Tescobank have conceded that when hiring on a consultancy basis, if it is a truly flexible resource brought in to deliver a specific outcome, it’s less likely to be in scope of IR35 but will still need to be assessed under the current legislation.
This position reinforces the guidance in our article Want to Avoid IR35? Stop Acting Like An Employee. If Tescobank will engage flexible resources on an outside IR35 basis, then you need to ensure that your services are delivered on a truly flexible basis.