The implementation of the new IR35 rule called ‘off-payroll working tax rules’ has radically changed the current status quo and employers now have to assess the employment status of working arrangements. An incorrect status decision will result in the hirer being liable for these taxes.
In anticipation of these new IR35 rules, a number of private sector companies adopted a risk-averse strategy. They concluded that a blanket approach was the easiest way to ensure compliance post-April 2021 and decided to engage all staff on a PAYE basis.
Although, this blanket approach may seem like an easy solution in the short term, it may be cost-prohibitive for smaller companies and removes access to a skilled contractor workforce that wishes to remain flexible.
The new normal has increased the demand for more flexible working. As companies exit lockdown and seek to navigate the challenges and opportunities of the post-COVID landscape they will desperately need the ability to scale resource up and down at short notice
We believe that businesses that are forward-thinking, and proactive enough, to take the necessary steps to continue working with contractors who do not want to work within IR35, may find they can scoop up some of the best talents and gain a competitive advantage by accessing what is a global pool of expertise.
Each working arrangement has to be assessed on its own facts and it may well be that certain engagements will fall within the scope of IR35. If that is the case then employers will either have to employ the relevant contractor PAYE or engage them through a compliant umbrella solution.
Our innovative approach to legal services allows access to specialist barristers without the need to instruct a solicitor. We provide access to corporate-level legal services with an affordable price structure.
Our team of expert barristers provides advice across the full range of employment law issues. They can assist you:
Call us for a no-obligation discussion to see how we can help safeguard your business and utilise the skills, flexibility, and savings offered by contractors.