It is important to consider existing processes and systems as early as possible to ensure you are equipped with the appropriate tools.
6. Establish how the facts of each engagement will be assessed on a case-by-case basis (applicable party in chain).
a. HMRC’s CEST
b. Qdos Status Review service
c. Combination of CEST and Qdos Status Review
d. Other service/internal assessments
7. Establish process for communication between recruiters and hiring managers.
a. How will the end client communicate their determination to the recruiter?
b. How will the recruiter ensure they receive determinations from all of their end clients?
c. How will a role be assessed, and by who, before advertising?
8. Review payroll processes and how these could be applied for contingent workers operating inside IR35 (applicable to the fee-payer which is usually the recruitment agency).
a. Do you have existing payroll systems for deducting the relevant tax and National Insurance contributions?
b. Are existing payroll systems suitable for managing a contingent workforce?
c. Are you equipped to issue payslips to contractors operating inside IR35?
9. Consider how the information is going to be compiled and reported upon.
a. How will you maintain a record of determinations made (to applicable party in chain)? Qdos Status Review includes immediate download of all determinations made via the system.
b. How will you prove payments made to contractors (fee-payer)?
It is crucial to keep a record of payments that are made to contractors, which will need to be reported to HMRC using a Full Payment Submission, similar to that of PAYE workers, and keep a record of deductions on a deductions working sheet.