Future proof your consultant workforce
What is IR35?
On 6th April 2017, major reforms to off-payroll working in the public sector came into force. Prior to this date, contractors using PSCs (Personal Service Companies) were in charge of determining their own employment status, and therefore abiding by the appropriate tax laws.
The 2017 reforms were that public sector end-clients became obliged to assess the status of the role. They then had to notify this determination to the entity in the supply chain (the Fee Payer) that was responsible for paying the Personal Service Company (PSC).
In the Autumn Budget of 2017, the government announced that this would be extended to large and medium-sized organisations in the private sector with effect from 6th April 2020.
Take our IR35 quiz
IR35 is a complex legal issue, that requires determining employment status and interpretation of tax legislation. Therefore, having a full understanding about the reform and how it will impact your business is critical.
To find out how equipped you are on IR35, we have created an IR35 readiness quiz that will test your knowledge of IR35 and see if you and your workforce is truly ready for the reform.
Despite 90% of employers being aware of IR35 reforms, only two thirds understood if a contractor was in or out of scope, something that has huge legal and financial implications for both contractors and companies.
It’s important to take this time to learn about the lessons and benefits from the public sector and remember that undertaking activity to transition from old to new will need to begin well in advance of April 2020.
Key to success was working with the team to identify risks, being prepared, ensuring the organisation has gripped the issue at the top level and changes are well communicated to hiring managers within the organisation, who are then able to deal with the changes correctly and consistently..
We work with large, complex organisations to help them better understand their workforce profile and risks ahead of IR35. To find out how we can support you and your business, please contact our team at engage.adeccogroup.co.uk/ir35.