Two key questions many companies ask in relation to the off-payroll rules are:
- who is responsible for making a determination and
- who is liable if that determination proves to be incorrect.
For traditional labour supply chains, the answers to these questions are relatively straightforward. HMRC themselves state that “in most cases it will be obvious who the client is” and that “where a person enters into a contract with an intermediary for the supply of a worker, they will be the client”.
But, as many organisations will know, there are numerous instances where this is less clear cut. As IR35 reform is implemented and then subsequently policed, it is vital that private sector firms take due diligence on both their traditional labour supply chains, but also any alternative arrangements where contractors may be involved.
The Contracted-Out Service Review provides businesses seeking to understand the impact IR35 reform will have on their business, with an independent review of your arrangements/engagements in order to ascertain whether they would be considered genuinely ‘contracted-out’ under the off-payroll rules (in effect as of 6th April 2021).