Through their ongoing risk assessment processes, Ithaca Energy pinpointed IR35 reform as a regulation that required careful management and external support early on.
Having first discussed the changes internally with key stakeholders, along with Oil and Gas UK, external tax and IR35 experts including Qdos, and other operators in the industry, Ithaca Energy developed a solid understanding of the reform.
Recognising that contractors touch many areas of the business, Ithaca Energy had the foresight to create an ‘IR35 Working Group’, responsible for managing the project.
Through this, the business identified a requirement for external support and expertise to support the company.
Soon tasked with administering the IR35 rules, Ithaca Energy needed to ensure they had assessed all existing and newly engaged contractors from an IR35 perspective before the original date of 6th April 2020, presenting two key challenges:
- determining whether individuals were considered supplier employees or contracted on a PAYE or limited company basis
- understanding how the business would confidently conduct individual assessments