Said no one…ever!
IR35 reform is just around the corner.
Are you prepared?
Are your clients prepared?
Are your contractors fully aware on the impact to them financially if they are now ‘inside’ IR35?
Unless you have the facility to run payroll in-house or are willing to offer deemed payments to your contractors, working with a contractor umbrella company would be the sensible option and this will be the outcome for 99% of recruiters. But how do you know that the umbrella company your contractor has just introduced to you is compliant?
The simplest way of ensuring you don’t get an unwanted visit from the tax authorities is to make sure you have a robust PSL in place and only engage with businesses that have completed a third-party compliance audit which gives you the confidence your contractors will get paid correctly.
Our advice is to only work with audited and accredited Umbrella Companies – those with the Professional Passport and/or FCSA accreditation will keep you on the straight and narrow.
And whilst we’re about IR35, here’s a checklist of items you should be planning before April:
1. Conduct an audit of your contractors: Who is Umbrella, PAYE, PSC, Self-Employed
2. Now you know the size of the problem: Which PSC is inside or outside of the new rules?
3. Communicate with your contractors on your findings
4. Prepare to negotiate rates. Is there a budget for this?
5. Serve notice and issue new contracts
Contractors need to know, if they are caught by the change, how it is going to impact them financially.
And so do you.
iConsult is a leading UK Umbrella payroll service provider renowned for our expertise in compliance and reliability. We provide first-class Umbrella services for contractors, freelancers, temps and self-employed CIS workers.