Rebekah Valero-Lee ir35
THE IR35 KNOWLEGE SERIES | PART 3 | AS AN END CLIENT, HOW DO I PREPARE FOR CHANGE?
There is much that can be done in advance of the changes in April 2020 and enough time to deal with these. These include: -
- A full review of your contractual workforce and the work performed/required
- A review of how the contractual workforce is supplied, including:
- Consideration of a managed service solution (if not using one already)
- Adopting a process to test whether individuals provided through PSCs would fall inside or outside of IR35 (as an addition to any test under CEST)
We believe private sector end clients can compliantly support your contingency workforce by putting processes in place to ensure you are capable of making accurate IR35 decisions.
Email firstname.lastname@example.org for a copy of our ‘IR35 Process Checklist’ which outlines what you need to consider in order to prepare to make accurate IR35 decisions.
What are the potential cost implications?
It is important to note that an ‘inside IR35’ assessment may increase client costs, this is for several reasons:
- Without changing existing contract/commercial terms, it will be unlawful to deduct Employers National Insurance Contributions (ENIC’s) from payments made to PSC workers who are deemed to be inside IR35.
- ENIC’s must be made directly by the fee payer (recruitment agency) and this burden will ultimately be passed onto client organisations.
- Recent cases brought to tribunal have supported contractors’ position.
- Even if commercial terms are amended there will still be a high demand for rate increases from contractors seeking to bridge financial gaps.
- Public sector payroll costs increased by more than 10% after April 2017.
- To avoid cost pressures, it is essential that you and your recruitment agency start planning for change immediately.
As the 2020 deadline approaches this guide has been created to help you navigate the changes that may impact your business. Recordings and commentary from our latest IR35 forum give insight into:
- How to avoid costly legal challenges
- Ensuring your contracts are compliant
- Reducing the numbers of contractors that leave your organisation
- Liaising with your contractor population to provide a consistent message.
- Getting equipped with the right tools and partners to compliantly support your organisation and contractor workforce
The e-book concludes with questions put to the panel by end clients who operate in the private sector. Their questions, and the answers provided, give real insight into the queries and concerns of business professionals who will be directly affected by IR35.
In our role as a specialist recruitment provider, Morson has the appropriate expertise to assist you to ensure your business is compliant with any changes to IR35 and can support you with your full review of the contractual workforce.
This guide has insights from Morson in-house compliance expert, Phil Beardwood, and our partners Champion Contractors and Weightmans LLP who specialise in dealing with agency/IR35 matters and are fully up-to-date with the intended changes in the Private Sector. Download your copy or contact IR35@morson.com for more information.