CEO update April 2022: Managed Service Companies, National Freelancers Day and more

In March it emerged that HMRC had launched a Managed Service Company (MSC) investigation into two accountancy services providers which specialise in contractors. Around two-thousand contractors have since been sent significant tax bills – up to £50,000. A handful of IPSE members are amongst those affected and we are determined to help them fight the charges.

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We have been working tirelessly with our insurance and tax strategic partner, Markel Direct, on how we can help our members appeal HMRC’s case and overturn the decisions. Over the past month, we have launched an MSC hub on the IPSE website to help those receiving letters and we have run Q&A webinars with Markel’s Paul Manson on the investigation, with more planned in the near future.

We are here to support you, so if you have received a letter from HMRC on managed service companies then please let us know by sending an email to [email protected].  

Stress Awareness Month

This month, we have also been celebrating Stress Awareness Month. We have published a series of blogs detailing how self-employed workers can improve their mental wellbeing by improving their fitness, staying active and cooking nutritional meals.

We have also hosted a series of webinars throughout the month on how they can improve their stress. Furthermore, we have launched a Strava group to encourage members to improve their mental wellbeing by being active - whether that be by running, cycling or any other physical activity.

Join the Strava group below: 

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IR35 anniversary research 

Early last month, we launched research on IR35 to coincide with the one year anniversary of the controversial reforms to the private sector. The research found that a significant number of companies (28%) have decreased the number of contracts they have given to freelancers since the reforms to IR35 in April 2021.

The report also found that the changes to the off-payroll working rules have had devastating economic consequences for businesses, with over two in five companies (42%) reporting that the IR35 reforms have had negative financial implications for their business.

Read the full report below:

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Despite the government’s decision to ignore IR35, we are continuing to challenge the flawed reform and stand up for our members. We are still reflecting the views of IPSE members and the self-employed community with HMRC in the IR35 forum, and we are continuing to conduct research and organise webinars and events around the issue.

Umbrella company research

With the government launching a consultation into the use of umbrella companies, we have conducted brand new research into their use and practices. The research, published last month, found that despite over a third (34%) of self-employed workers operating through an umbrella company, over 3 in 5 (61%) umbrella company workers believe that there are no advantages in operating via an umbrella company.

The research was shared with the consultation, and we will update members on the government’s report as soon as it is published.

Read the full report below:

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LGBTQIA+ call out

At IPSE, we’re always keen to showcase the breadth and depth of the self-employment sector. In this light, we are currently looking for members that are part of the LGBTQIA+ community. If you are, then we'd love to hear about your journey in self-employment. Whether you've just started out, or you've been self-employed for several years, hearing your story will help to inspire others in the sector.

Contact us

National Freelancers Day

IPSE’s flagship event, National Freelancers Day, is back! On Thursday 16th of June, IPSE will be hosting a series of webinars, keynotes and networking events designed specifically for self-employed workers. We are also planning some regional in-person events on the day itself. The event is aimed to give self-employed people a glimpse of what's coming down over the next year as well as examining how freelancers can bounce back post-pandemic.

As an IPSE member, your ticket to National Freelancers Day is free, however, registration is essential to attend the event. Members can sign up with the promo code NFD22MEMBER to be part of the day.  For non-members, you have until May 6th to get an early bird ticket for £40.

Read more about National Freelancers Day below:

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Need more help? Self-employment often means having to navigate lots of different websites with no clear source of truth. As the only not-for profit focused on self-employment, IPSE provides impartial and relevant advice on the topics that matter to you.

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Derek Cribb