Due to uncertainties during IR35’s initial introduction and the ambiguity of elements of the legislation, it’s not surprising that many SME’s and private sector companies find managing IR35 a challenge or aren’t aware of the financial risk.

There is now a very clear direction of travel from HMRC and greater investment by the labour government to support HMRC’s ability to challenge employers’ management of the process of onboarding Interim consultants and contractors and levy subsequent fines. IR35 needs to be treated seriously and managed in the correct way to ensure compliance and minimise future financial consequences and any reputational implications.

We support our clients to identify any potential risks and to evidence control of the process. Working closely with the C-suite, HR community or hiring managers, the key issues are usually based on the onboarding process, contract management, and training of best practice.

The process starts with a quick sense check of the current state:

  • Audit – review status with Hiring managers and live Contractors.
  • Data – check or create Interim / contractor register.
  • Risk – benchmark internal processes – Inside/Outside IR35 onboarding.
  • Compliance – identify any “at risk contractors” live and historical Interims

We then identify any areas for improvement – process, systems or data management:

  • Interim recruitment process – “why, what for, when” the decision-making process.
  • IR35 Inside/Outside assessment process prior to contracting.
  • Training needs, or data management & systems changes to deliver compliance.
  • Review of contracts and management information structure.

Some of the benefits of Interim IR35 support:

  • Understand and address your level of risk.
  • Reduce potential costs and mitigate future unnecessary spend.
  • Develop understanding of gaps in policy, process and ownership.
  • Understand of future training needs.
  • Evidence company intent – foundation for compliance.
  • Improved awareness for hiring managers.
  • Develop a legacy of control for the business.

Client testimonial – Director, National Charity

“The whole project was enlightening and quickly identified areas for improvement. It also delivered greater confidence across the business, helping hiring managers to understand and manage the process effectively, from onboarding to contract management and developing a value for money mindset. This combined with reduced risk, has led us to develop a real return on investment”.

If you have any questions or would like to discuss the risk and opportunities of IR35 in a quick free diagnostic teams call, contact Tony Goldsby for more information on 0121 445 7900 or tgoldsby@lord.co.uk