We will work with you to complete our IR35 test to take all risk off the table for you as an End Client
As you are aware the changes to IR35 have meant that responsibility for determining IR35 status has moved from the Contractor to the End Client, moving tax liability to the Fee Payer.
We have invested heavily in this change to ensure we can fully support clients to help mitigate their risk, by bringing a specialist IR35 consultant into the business who has a wealth of experience and knowledge in this particular area.
Phil Joy, who joined us back in 2019 ahead of the IR35 changes has done an incredible job in supporting us and our clients through these changes and he will continue to help guide clients through the complex IR35 process.
Are you at risk?
You are at risk if you directly engage a Contractor outside IR35, as this makes you the Fee Payer. In this scenario, you carry liability should it be proven by HMRC that the IR35 status was incorrectly determined. You could also be at risk if you engage a Contractor through a third party without taking “reasonable care” to determine IR35 status. This could result in fines and penalties for unpaid tax.
1. Are you set up?
If you haven’t yet taken steps to ensure you are compliant with the changes to IR35 then these steps are key to ensure you become compliant and don’t put your business at risk…
Educate your internal teams and hiring managers on the changes to off-payroll legislation.
Evaluate your current contingent workforce to understand which roles may be in-scope of IR35 and your potential risk. Are you aware of the Fee-Payer liability for directly hired contractors?
Assess your workforce - do you have a detailed and insurance-backed assessment service to ensure minimum risk while also giving fair determinations to your contractors?
Provide Status Determination Statements to your workforce and give them the ability to appeal the decision if required.
Following the confirmation of the Status Determination Statements, you will need to start implementing plans for migrating contractors who are in-scope of IR35 to either PAYE or compliant Umbrella payment options.
If you engage a Contractor through Navartis, then we assume the role of Fee Payer so carry the immediate risk. However, as the End Client, you will be required to take reasonable care to determine whether the work carried out sits inside or outside IR35.
To remove this risk for you, we offer and administer a detailed IR35 test which will determine the correct IR35 status of the work to be carried out by the Contractor, which will also provide you with a transparent audit trail of how the IR35 status was determined.
If you directly engage Contractors (making you the Fee Payer), you can take advantage of our Contractor Payroll Service. You will remain the End Client, but you will no longer be the Fee Payer, removing the initial risks. We will work with you to complete our IR35 test to take all risk off the table for you as an End Client.
Need advice or support with IR35?
If you would like to find out more how we can help you and your business through the IR35 process, please get in touch with our IR35 specialist Phil Joy.