HSBC will cease engaging limited company workers from this September, saving itself the job of having to assess them under a new IR35 from April 2020, Moore News can reveal.
The bank has told all ‘Ltd’ suppliers at key units like HSBC Digital that after one further contract extension, they must choose between being terminated or becoming employees.
PHOTO CREDIT: INSIDERMONKEY.COM
Ultimatum: To head off the hassle of having to decide their IR35 status, Britain’s largest bank has told its limited company suppliers to join the payroll — or be jobless.
But HSBC has sweetened its ultimatum for some of the suppliers by putting them on a so-called ‘keep’ list, in which case they can stay on — as long as they work via a third-party from September.
The thinking is that HSBC will remove itself from the incoming obligation for the bank to decide IR35 status, by making the workers staff or another party’s supplier. Or just by axing them.
“Culling a flexible workforce and replacing them with employees will remove any IR35 concerns for HSBC,” status advisory Qdos Contractor confirmed last night.
“But it’s a worryingly short-sighted approach to dealing with IR35 reform [akin to] using a sledgehammer to crack a nut."
Simon says: To read my story in full visit ContractorUK.