Preparing for IR35 reform: our contributions so far

IR35, Off Payroll Reform

A look at the crucial work we are undertaking to help businesses manage IR35 reform 

Medium and large private sector businesses are preparing for IR35 reform, which will be rolled out on 6th April 2021 and see these firms become responsible for assessing the IR35 status of contractors.  

As has been the case in the public sector since 2017, incoming changes to the IR35 rules will mean the risk is transferred from the contractor to whichever party is tasked with paying the worker, whether the client or the recruitment agency. 

While the changes pose significant challenges to businesses, IR35 reform is manageable. And here at Qdos, we have been supporting thousands of businesses to help them successfully navigate the off-payroll changes. 

In this article we will outline the key takeaways from our work so far.

Supporting over 2,200 organisations (and counting)

We are playing an important role in helping the private sector manage IR35 reform, with over 2,200 end clients and recruitment agencies benefitting from our expertise. The companies we are supporting will be able to compliantly engage genuine contractors outside IR35 going forward, while also mitigating the risks through IR35 insurance. 

Having won the ‘Best Legal, Compliance or Tax Adviser’ award at The Contracting Awards 2020, businesses can trust us to provide a stand-out and trusted service.

Protecting over 15,000 contractors (and counting)

At the time of writing, through the Qdos Status Review tool we have carried out over 15,000 independent IR35 contract reviews. In short, this means all contractors who have had their status assessed by their client (who has then engaged the support of Qdos) have been subject to fair and well-informed IR35 decisions. This approach benefits all parties in the supply chain. 

Finding 91% of contractors outside IR35

Nine in ten (91%) contractors whose IR35 status we have rigorously reviewed for businesses belong outside IR35, in our expert opinion. Given our team has assessed over 150,000 contracts and working practices since IR35 was introduced in 2000, and defended more than 1,600 IR35 enquiries in this time, our deep understanding of this complex legislation is crucial in ensuring compliance. 

Offering businesses invaluable insight 

For companies to confidently navigate the IR35 changes, it’s vital they have a clear idea of the steps to take and processes to implement. For example, is every stakeholder aware of the reform? How will the changes be communicated to parties in the supply chain? Is a payroll solution in place to accurately deduct PAYE tax from contractors working inside IR35? 

These are all questions that must be answered before a strategy is developed and actioned. It is something that Qdos have so far assisted 75 businesses with, carrying out in-depth IR35 audits to assess a firm’s readiness for reform before helping them build a clear and measurable plan.

Educating all IR35 stakeholders

IR35 is an ambiguous tax legislation and numerous different factors must be taken into account to correctly determine a contractor’s status. For many businesses, IR35 itself is a relatively new concept and is not something they have had to consider up until quite recently. It therefore goes without saying that education and training is vital, arguably holding the key to compliantly implementing these changes. 

Having held a number of webinars, which are free for any end client, recruitment agency or contractor to attend, we are working hard to equip those impacted by this reform with the knowledge they need to manage it. Alongside webinars, we offer training, consultancy services and workshops to get businesses up to speed. This makes up a core part of our activity in the lead up to 6th April 2021.

Having proudly protected contractors since 1988, at Qdos we realise the importance of the coming months and through our award-winning range of IR35 services will continue to represent the best interests of independent workers and the businesses that place and engage them. 

 

The Qdos Status Review facility provides a range of expert IR35 solutions, including IR35 status reviews and IR35 insurance, to allow businesses to compliantly place and engage contract workers. For more information, please email info@qdoscommercialservices.com or phone 0116 478 3390.

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