Many companies rely on flexible workers or contractors to provide essential services and expertise. however, with the introduction of the IR35 legislation next year, you may need to change your contractor strategy. So are you ready for the change?
The Private sector IR35 reform is set for April 2020, when employers hiring contractors will be responsible for determining their IR35 status.
What are the consequences of getting it wrong?
Businesses are likely to be affected in three key areas:
1. Financial penalties
The responsibility of assessing whether the contractor is ‘inside’ the scope of IR35 is down to you, the company hirers and recruiters.
You will need to identify if an assignment is inside or outside of IR35, and it is likely that there will be some sort of liability for your company if this assessment is wrong.
Contractors will want to work for firms that understand the rules and have taken appropriate steps to ensure compliance. In-demand contractors will only want to work for businesses which understand the legislation and are abiding by the new rules.
3. Increased fees
The cost of using contractors could rise if you don’t address the changes. When setting staffing budgets for next year you will need to take this into consideration.
There has been a significant rise in firms using contractors to help fill short-term needs or finalise projects. Firms see flexible workers as a quick way to hire the specialist skills that they need, without the commitment of permanent resource.
But the legislative changes will open up firms to more risks, so it is important that as HR and hiring specialists that you know about the changes to the law and how it will affect your business going forward.
Danos Consulting is here to support you, we can help ensure that you understand the legislation, and that you have the right processes in place. We can support you with:
- Current contractor auditing
- Analysis of IR35 legislation and the reforms
- Detailed guidance on implementation
- Process and procedures
- Delivery of cross-functional training
Don’t delay contact me today and let’s discuss your IR35 solutions to ensure that you comply.
If you have any further queries or if there is anything else you would like to discuss, please get in touch.