By Dean Robinson
From April 2021 the legislation that makes sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same tax and National Insurance contributions as employees are charged. The legislation known as ‘IR35’ will now mean the client will be responsible for determining if the off-payroll working rules apply and not the contractor.
Back in January, Marshall Wolfe founder Jim Marshall shared his thoughts on the real issues that IR35 changes have exposed and he raised some really interesting points – https://marshallwolfe.co.uk/2020/01/29/ir35-is-not-the-problem-it-has-just-exposed-the-problem/.
I believe the way we think about how we procure talent and deliver projects will need to fundamentally change. It’s never been so vital to get to grips with your Talent Operating Model and understand the ‘why’ behind the process. Are you hiring for strategic reasons or tactical? If it’s based on long term strategy then a permanent hire may be the solution and if that’s difficult then there maybe deeper reasons behind why you’re failing to find the right people and attracting the best candidates. If it’s a tactical decision, then perhaps you just need a body to fill a temporary hole in which case fixed term or time and materials may be the best option for the business. I anticipate we’ll see a lot more delivery based opportunities arise but this shouldn’t be used as an ‘IR35 work around’, but a chance to engage with highly skilled individuals or teams that can solve problems and deliver clear and defined, time limited outputs.
The reality is we all need to operationalise the current situation and understand what this means for both businesses and contractors. Questions to ask yourself:
- Do you have clear processes?
- Do you have the skills and knowledge to determine whether a position should be deemed inside or outside IR35?
- Have you considered the impact on day rates that an inside IR35 determination will have on finding the best people?
- As a contractor, do you understand the mechanisms that need to be in place to provide services in the new world?
At Marshall Wolfe we’ve always worked in a highly collaborative way with the entire supply chain and this is even more crucial throughout this major process change. We collaborate with a trusted network of partners, Insurers, legal professionals and industry bodies to ensure we have a strong governance and risk wrapper around any projects we take on. We’ve put together some information that we’d be pleased to share on how to navigate talent acquisition leading up to April 2021 and beyond. Our IR35 working group have mapped the journey to ensure the right decisions are made in balancing an optimising engagement within safe Risk and Compliance boundaries. Please get in touch if you’d like to receive a copy of this information by emailing email@example.com or if you’d like to chat it through we’re on hand to help, reach me (Dean Robinson) on 07545 581 224.
Disclaimer – Views, thoughts, and opinions expressed are my own and not necessarily that of the employer. Marshall Wolfe always recommend companies and individuals making these decisions seek professional legal and accounting advice.