IR35 Off Payroll Working: Four steps to preparing, for Private Sector organisations
Following my article on the need to prepare yourself and your organisation for changes to how IR35 is determined, I’ve had some interesting conversations about what that looks like.
As we at the Adecco Group UK&I have seen from the implementation of off-payroll working in the Public Sector, the sooner your organisation begins planning for the new regulations, the better. The delay announced in the Autumn Budget presents the ideal opportunity for Private Sector organisations to take steps to soften the impact, and retain the expertise of true consultants.
I wanted to share my take on the best way to tackle the IR35 rules, and what you can be doing today to prepare for 2020.
From my experience working with Public Sector organisations who did it well, as well as those who were less prepared, this is what I would do in 2019 to make sure the transition is as smooth as possible;
Form and up skill an executive steering committee to own the IR35 risk and compliance processes as well as the governance. This committee will become the essential IR35 process leaders for your organisation, upon whom the rest of your organisation can rely on for IR35 expertise.
Ensure you have all the necessary data to evaluate compliance with the IR35 regulations.
Key questions you should be asking include; Who are your PSC workers? Which of them are mission critical? Will you pay more to keep them? How do you manage them? What do the relationships with agencies and supply chain look like? Are there other ways of engaging PSC workers that could be used?
Hold workshops with your line managers to help them own and understand the process with an emphasis on compliance. Work to understand where the management can change around substitution, direction and control; ensure that they are giving the right messages to the contractor base.
Communication with agencies and contractors is essential, and ought to begin as early as possible. Make sure everyone understands a clear stance in seminars and surgeries so the regulations and subsequent internal policies are clear to all.
Author: Simon Crichton
Current: Senior Vice President Badenoch + Clark, Adecco Group UK & Ireland
Education: The University of Manchester