IR35: The risks of a blanket decision and how to avoid a talent shortage post April 2020

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by Rebekah Valero-Lee on

With the industry braced for the autumn budget on the 6th November, private sector organisations have little over 6 months to get their IR35 strategy in place or face financial risk and a shortage of contract talent.  Many businesses are only just starting to wake up to the work required to continue to use contractors compliantly due to private sector IR35 reform in April 2020. 

Our compliance and assurance director, Phil Beardwood, was this week featured in industry leading publication Personnel Today, discussing why it is irresponsible for organisations to panic and try to mitigate risk by cutting corners and taking a blanket approach to IR35

In April 2017, the government amended existing IR35 legislation so that public sector organisations employing contractors working through limited companies – meaning they pay less tax and national insurance – would now be responsible for deciding whether they were inside or outside of IR35.

Genuinely self-employed contractors are deemed to be outside, but if you are considered inside IR35, HMRC expects you (and your employer) to pay the same tax and NI contributions as other, permanent employees.

From April 2020, these rules extend to the private sector – and as recent headlines have shown, a number of organisations have opted to avoid the risk altogether by just demanding everyone goes on the payroll.  Now that the onus is on the employer, rather than the contractor, to ensure they’re paying the appropriate level of tax, it’s understandable that they want to mitigate any risk. But we can learn much from public sector experiences. Phil Beardwood, compliance and assurance dirctor at Morson warns:

“The public sector’s cautious approach to IR35 by deeming entire contractor populations as inside only created further problems, with many contractors quickly leaving their roles to pursue other assignments – and often with competitors – or pay rates increasing considerably in order to retain their services and skillsets” - Phil Beardwood, Compliance Director, Morson

A recent survey by contractor accounting firm Brookson found that three in five private-sector contractors will consider working elsewhere if they are found to be inside IR35.

Read the full article on Personnel Today 

So what can you do to prepare effectively for IR35 and ensure you feel comfortable to continue to engage a contractor workforce post April 2020?

Morson and our expert IR35 partners have  wealth of experience in dealing with IR35 matters across the public and private sector.  To support you in the lead up to (and following) the April 2020 off-payroll changes, Morson has exclusive partnerships with specialist contractor services company, Champion Contractors, and Top 40 UK law firm, Weightmans LLP, both of whom have significant experience in helping businesses navigate the changes to how IR35 is applied in the public and private sector.  Together we can help you undertake a full review of your contractual workforce.

To ensure your business is prepared well in advance of the changes, contact the team at or check out our  IR35 Hub.

Cx Jobs

Procurement Engineer

An exciting opportunity has arisen to work for BAE Systems and provide support within the Procurement Supply Chain - Airframe team In-Service Pricing Team. The support required will be administrative tasks discharging activities such as raising RFQs, chasing RFQs from Supplier, completing Governance paperwork, adding prices to system and general query resolution relating to quotes. The jobholder can start with BPSS security clearance with SC pending. This person will have indirect access to ITAR material as part of their role, but can work on non-ITAR until SC comes through. Duties will involve; - Request Datapacks from Engineering - Raise and Issue RFQs to Supplier - Expedite Quotes in from Suppliers - Complete price analysis - Conduct Supplier down selects for best offers - Add prices to systems and trackers - Provide statistics - Query Management As a Procurement Engineer you will be able to work to deadlines. Good customer service skills & a positive attitude is required. You will have project management skills. Good Microsoft Office skills are required, especially Excel. You will have good problem solving and be tenacius. Morson is acting as an employment business in relation to this vacancy.Buyer; vendor management; supply chain; procurement; purchasing; supplier management; risk management; negotiation; supplier performance; purchase orders; ERP systems; MS Office; influencing skills; shipping; ITAR; spares and repairs; RFQ; invoicing; SAP

Project Manager - Consignment Stock Process/Logistics

Our leading aerospace client is recruiting a Project Leader - Logistics / Procurement for a 6 month contract based on site in Filton to project manage and lead the introduction of a Consignment Stock process between the Filton site and a major supplier. Accountable for the development of project plans relating to the introduction of consignment stock processes and infrastructure on behalf of Logistics, Procurement and Operations.Ensure that adequate resources are in place to deliver the project within the committed timescalesEnsure that the risk management process is followed for each process stepAccountable for communication with internal and external customers regarding the aforesaid project and ensure that the correct process and procedures are adhered to and signed off at the appropriate timesAccountable for the completion of necessary Capex documentation / business case relating to the aboveManaging project within budgetary allocationsManagement of project time frames to original plans ensuring no/minimal project delayCompliance with all risk assessments and company Environment, Health & Safety Procedures relevant to all work activities. Reporting of all accidents and near misses as per the company's procedure and implementation of identified corrective actions. Maintain good standards of housekeeping in designated work areaChampion "Export Control" compliance activities, ensuring you and where applicable, members of your team, adhere to the site "Technology Control Plan (TCP), guaranteeing compliance with Export Control Regulations, controls, training and systemsCandidates will have extensive experience in the delivery of large projects. Knowledge of Logistics, Procurement and inventory control and an understanding of capital related management and control is also required.Ideally candidates will also have 5+ years procurement / logistics experience and previous experience in supplier transfersExtensive Microsoft Project experience is also required.Please note that this is a PAYE only on site contract, please do not apply if you're looking for remote working and/or to be paid via an Umbrella company.

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Construction Support Engineer(Geotechnical and Earthworks)

Working within a framework arrangement executing projects on HS2, roles and responsibilities will be:- Reviewing construction Products and Materials Approvals Form for Geotechnical and Earthworks. * Review and assist in responding to Field Change Requests (FCR) * Reviewing of fabrication details, shop drawings for Geotechnical and Earthworks * Review Temporary works design (only where it impacts permanent works) * Reporting of monitoring, testing etc results and preparing reports * Producing As-built Drawings for Geotechnical and Earthworks assets * Contributing to the Quarterly Reports as required by the Contract Scope * Coordinate, review and interpretation of the site observations, records of as revealed ground conditions, testing and monitoring data to support implementation of the observation method (as defined by Ciria R185) where it is specified within the design. * Assisting in establishing a team to deliver the services which will consist of site-based designer's representatives as well as office based support Remote working is acceptable.

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