In comparison to recent years, the future changes to IR35 for the Private sector is presenting one of the biggest challenges. Following the trial run in the Public sector, these long looming changes are now to be introduced to the Private sector in April 2021 making it extremely important for recruiters and clients to make sure they are as prepared as possible. 

This change has been designed to shift the responsibility of determining contractors contract status from the contractor themselves to the business planning to engage the services of that contractor. This involves assessing the contract that is in place, as well as the actual working practices of that contractor, to determine whether that individual is Inside (caught by) IR35 or Outside IR35.

“Reasonable care” must be taken in ensure HMRC’s guidelines have been satisfied and the employment status decision is accurate. This decision must be made and communicated to the worker and any intermediary supplying the worker, prior to 5th April 2021.

Many have read up about this and concluded that the legislation change affects the end user client and not the recruitment agencies, although this is correct, it is still important to educate yourself and your contractors too. 

HOW TO PREPARE YOURSELF AND YOUR CONTRACTORS.

1. Get to know IR35 – Familiarise yourself with the upcoming changes and the effect this will have on contractors post-April 2021. Many contractors will have done minimal research in to the legislative changes online or conversations with other contractors, so putting yourself in a position of support for them will help you gain an advantage over your competitors and strengthen your contractor retention rates. 
2. Process of support – Although the effects of IR35 will differ depending on each individual contractor, the steps they take prior to being assessed is the same. Your agency should put an IR35 process in place which breaks down what affect IR35 will have and how contractors should approach this with the end user clients. It is important that all recruiters in your business have the same information to ensure consistency.
3. Payroll options for contractors – Workers found to be Inside IR35 or considering taking on this type of role must understand their options with regards to operating outside of their own Limited company. It is important that you are able to explain the alternative ways of being paid and provide calculations of their potential take home etc so they are fully informed before accepting the role or to continue with their current role. This will help avoid issues moving forward. 
4. Reach out – As you may have found, understanding legislations, and knowing what steps to take is not easy. This is the same for most contractors and although the responsibility is on the end user clients, it is a good idea to notify your contractors of t5his fact and let them know that it is ok for them to approach the end user client for updates and clarity. The sooner they have the end user client decision the sooner they can investigate their options.
5. Specialist advice – As you may have already found, there is a lot to consider and understand when it comes to these upcoming changes to the Private sector, which is why partnering with a specialist such as Imperium Contractor Solutions can be of great benefit. We are here to assist you with all aspects of IR35, we offer multiple payroll options for workers and partnered up with specialists to ensure our advice is always accurate and available. We can support contracts, agencies, and end user clients with understanding IR35 and making the decisions on contractors IR35 status’ both prior and post April 2021.

We understand just how critical it is for recruiters to understand IR35 and how they can support their flexible workforce, which is why we have set ourselves up in such a way as to be a real asset to agencies and end user clients during this time and forever moving forward. 

If this article has got you thinking and you have any questions, please do not hesitate to get in touch with us here are Imperium Contractor Solutions Limited. We are in this together.

Imperium Contractor Solutions Limited, Redfern House, First Floor, 105 Ashley Road, St Albans, Hertfordshire AL1 5DE, England, 01727648666, info@imperium-cs.co.uk