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99220.008 MAN Trucks - New Truck Launch Banner 137x23_aw1.indd 1 18/02/2020 10:06 Driver agency rates could increase by 20% in proposed tax changes
No U-turn on IR35 rules By Carol Millett
Hopes for an 11th hour U-turn on IR35 have been dashed this week after an HMRC review confirmed the proposed tax changes – NEWS INSIDE 16/01/2020 13:00that which could see driver agency rates 0875_MTA advert 60x38mm.indd 1 leap by 20% – will go ahead from Trouble at ESL April. Eddie Stobart Logistics loses The IR35 review, dubbed ‘Review £199m in six months p3 of Changes to the Off-payroll Working Rules’, was launched in Family firm winds up January this year on the back of a Eric Vick Transport closes pre-election promise from former after 70 years on the road p4 Chancellor Sajid Javid that he would “make sure that the proposed Free roadshow changes are right to take forward”. Get the lowdown on Sheffield The review has confirmed that City Council’s CAZ plans p6 the tax changes, which aim to prevent tax avoidance through the of limited company arrangeOPERATORS INSIDE use ments, should go ahead. Under the changes, large and CM Downton.................................................. p4 medium-sized haulage companies Cullimore Group ...........................................p16 with net turnover of more than £10m or 50 or more staff will not Eric Vick Transport ........................................ p4 be able to take on drivers that work FLX Logistics ................................................ p6 as limited companies. Instead the driver will need to Palletways ................................................... p6 be employed as a PAYE worker – either by the haulage company or S Walker Transport........................................ p6 the driver agency or through an XPO Logistics ...............................................p24 umbrella company.
The changes are predicted to add another 20% to the cost of hiring agency drivers and exacerbate the driver shortage. However, the review has recommended some “soft landing” concessions, including exempting companies in the first year from paying penalties for any genuine errors relating to off-payroll. The RHA is warning large and medium-sized companies to prepare for the new legislation by determining the status of the drivers and the driver agencies they use. Kieran Smith, CEO of Driver Require, said some major hauliers,
HEAVY INVESTMENT: Volvo has introduced a new generation of heavy trucks, which it says have a strong focus on the driver environment, safety and productivity. Speaking ahead of the launch of the all-new FM, FMX (pictured) and facelifted FH and FH16, Volvo Trucks president Roger Alm said: “We are really proud of this big forward-looking investment. We aim to be our customers’ best business partner by making them even more competitive and help them attract the best drivers in an increasingly tough market.” The biggest changes are to the FM and FMX, which feature a new shared cab. Externally they are instantly identified by their V-shaped LED headlamps, larger grille with new mesh pattern and distinctive single-line side contour. Production will start in September, and trucks will appear on UK roads at the end of the year.
like XPO, are already refusing to use drivers not on the agency’s PAYE system or drivers operating under an accredited umbrella company to ensure their drivers are IR35 compliant. He is calling on all major hauliers to follow XPO’s example to prevent the rise of unethical umbrella companies that would undercut ethical rivals through tax avoidance schemes and potentially leave hauliers liable to pay the unpaid PAYE taxes and financial penalties. However there are concerns XPO’s stance could see the demise of smaller agencies.
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Focus: regulators p10 Viewpoint: Artificial intelligence p14 Profile: Cullimore Group p16 Tipper safety p20 Alternative fuels p24 99220.008 MAN Trucks - New Truck Launch 18/02/2020 Earpiece10:05 42x62_aw1.indd 1