IR35: Who Cares…
Posted on 1st March 2020 at 10:45
The recent decision to delay IR35 legislation has been welcomed across the contractor community and is seen by some as a return to business as usual; the reality is that unlike everything else around us, very little has changed. When legislation comes into effect on April 2021, HMRC will move to hard enforcement as they always planned to do.
Our view remains that we should engage with our clients and associates as though the legislation was in place, and continue to invest in solutions and partnerships to ensure we have full clarity around the IR35 status of each engagement for both our clients and contractors.
How can we help…
Our Engagements are IR35 compliant
We focus on output-based contracts for all consulting engagements, centering delivery on set time periods and outcomes. Projects operating in this way are compliant with legislation and our contractors supplying services are deemed “outside IR35”. Additionally our Master Framework Agreement, and SOW reviews developed in partnership with Osborne Clarke and Larsen Howie, address the 4 key elements a client and associate should be aware of when determining IR35 Status.
These are:
Right of Substitution
No direction, supervision or control
No Mutuality of Obligation
Contractor must be subject to Financial Risk
Our on-boarding process supports our associates
We ensure that all of our associates who are using a PSC have access to our network of trusted partners; where requested we can support with IR35 indemnity insurance or setting up an umbrella organisation in the event of an engagement being deemed as ‘inside’ of IR35.
We want to be sure that we are ready for IR35 when it comes and believe that whilst there is a period of grace, we all still need to care!
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