April is fast approaching!
The Government recently released details of a review of the upcoming IR35 legislation which is due to take effect from 6th April 2020. This announcement came after the promises made by the Conservative Party in the run up to the General Election, where Sajid Javid committed to reviewed the upcoming legislation changes.
Whilst many businesses – and contractors – were hoping that there might be delay or change to the draft legislation, or indeed an announcement that the reforms will not go ahead, this doesn’t appear to be the case. Instead, the review is very much focussed on addressing concerns from businesses about the changes, and looking at what further steps could be taken to ensure a ‘smooth and successful’ implementation for the reforms.
There is also a commitment from the Government that a separate review will be launched to explore how the Government can better support the genuinely self-employed. More details on this are to follow.
In light of the announcement about the review, and the seemingly clear indication that legislation will be passed as expected, it is critical that all businesses take urgent steps to prepare for the upcoming legislation changes. If you haven’t started your IR35 preparation as yet, our recommendations for the immediate action you need to take are:
- Plan your project – with less than three months to go until April, the deadlines are tight, and so a carefully maintained project plan will ensure you are ready on time.
- Audit your current contingent workforce – find out who you have on site, and how these services are supplied. This sounds easy, but in practice many businesses have struggled to collate this information, as contractors can typically be engaged via a number of different routes.
- Educate your teams – ensure all relevant stakeholders and hiring managers have a knowledge of what new legislation means for your business.
- Decide how you are going to make IR35 assessments – what tool will you use? Who will do this? How will you ensure on-going compliance?
- Consider whether you use any ‘directly’ engaged workers – i.e. workers who invoice you directly, rather than via a recruitment agency. Do you still want to do this post-April, or will you need help in engaging these workers via a compliant payroll solution?
- Think about the possible commercial implications – increased costs, a reduction in available contingent resource or contractors not wanting to accept roles assessed as ‘inside’ IR35 are all possible scenarios which you should consider.
How Outsource can help!
As a specialist supplier of contingent resource, we understand the impact that this legislation will have on your business, and we are well placed to help you ensure your labour supply chain is compliant. Whether you haven’t started your IR35 preparation yet, or whether you just need some additional support to supplement your project team, our range of services includes:
- Provision of workshops / education sessions for contractors, line managers and key business stakeholders to ensure everyone understands the new legislation and your new liabilities.
- Support in assessing your existing contingent workforce against IR35 key criteria.
- Formulation of internal processes and policies to ensure current & future compliance.
- Payroll of contingent workers to take away your direct financial liabilities.
- Alternative solutions to allow you to continue to engage the valuable specialist flexible resource you need in order to complete your projects.
Contact us today to find out how we can support you with this important change - email our Head of Compliance to kick start your IR35 journey.