Countdown to IR35 | Are you Ready?
There has been an update in regards to IR35 and that the changes will go ahead in April 2021.
Here we try to summarise what is quite a complex subject and provide some FAQs and guidance for both clients and contractors.
What is IR35?
The Intermediaries Legislation became law in 2000. It was introduced in response to the growth of what the government termed ‘disguised employment’ – aimed at contract engagements.
Identified as ‘off-payroll rules’, the legislation has already been applied to contract engagements in the Public Sector since April 2017.
IR35 at its core is simply a test for self-employed status.
It effectively asks: “If the limited company and agency did not exist, would the individual be an employee of the End Client?” If the answer is ‘yes’ then the contract falls within IR35. If the answer is ‘no’ then the contract falls outside of IR35.
Very simply put, the IR35 legislation and conditions apply to contracts that are performed in the ‘manner’ of an employee, rather than a self-employed person truly working in business on their own account.
Off-payroll working - how has IR35 changed?
The core IR35 legislation itself has not changed, but rather the way it is viewed and administered by and for HMRC.
The current approach works on the basis that it is up to contractors who are completing contracts in the Private Sector to establish whether or not their contract engagement is subject to IR35.
The key change is that, from April 2021 onwards, this obligation will fall to the End Client rather than the contractor.
How can we help you prepare for the change?
We have been operating off-payroll rules since April 2017, when they first came into place in the Public Sector, and therefore have significant experience and expertise in this subject.
We offer a range of services that will:
• Help you understand what impact the reform will have on your business
• Support you through the change process
• Help mitigate risk
• Help you adapt and future-proof your workforce accordingly
These services include:
• Workforce audit
• Contractor surgeries
• Engagement models
• Supply chain review and audit
• Statement of Work options
We have developed agreements with a number of our independent specialist partners to be able to support our offering with specific advice. This, along with our own expertise, means we are able to work with our clients across our group portfolio to ensure that fully compliant models and processes are established.
We have also just concluded two seminars on IR35, featuring information on compliance and determinations, and what your business needs to do in order to ensure it is compliant by April this year.
The webinars, held in partnership with Penningtons Manches Cooper and JSA Services, recieved impressive turnouts and some truly great feedback, so thank you to everyone who attended. We have made the PowerPoint available for personal download - click here to download it!
For more information, a general discussion, or to arrange a suitable time for an initial consultation, please contact our specialist Client Solutions team via the following routes:
Client Solutions Director – Scott Siwicki
M: 07904 046 045 E: Scott.Siwicki@advantageresourcing.com
Client Solutions team:
David Woakes M: 07741 644 767 E: David.Woakes@advantageresourcing.com