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IR35 reforms

What are the Implications for Agencies, End Clients, Contractors?

IR35 back on the Agenda

The Finance Bill 2020 looks set to waive through the IR35 reform legislation for April 2021. Whist the next stage is the reporting stage which could be held as early as next week. HMRC are very confident that it will be passed and be inforce in April next year

What does this mean to the PSC’s and engagers of contractors using their own Limited companies. It means that you should be starting to prepare again for the introduction of this legislation. The earlier you start the process the better prepared you will be. If you need some help and guidance, then you should get in touch with Pendragon.

What Simple Steps Can Engagers Take To Prepare Now?

• Consider the overall engagement of an Outside IR35 contractor

• Treat them as a business and not a pseudo employee

• Review working practices to ensure they are a true reflection of the contractual agreement

• Remove ‘Supervision Direction or Control’

• Substitution not a Replacement

• Work should not be by time and measurement, but evaluated by project milestones, deliverables and project cost

Starting or Restarting IR35 assessments

• If you have already conducted assessments and determined a contractor as inside IR35 ( PAYE & NICs deducted at source) have you revered to paying  them outside because of the delays? If yes you should be looking to get your processes in place by the end of November so that they can be embedded before April.

• Whilst you can carry out a pre- assessment, you should get professional advice by an IR35 advisor or specialist

• Pendragon can assist you to carry out IR35 assessments using our own IR35 tool

• We will review the current working practices, contracts and provide advice to ensure that your processes are compliant

• For contractors that fall inside IR35 there are alternatives to “no rights employment”

How Can We Help?

We offer expert guidance with practical steps on how to create and implement the IR35 processes. If you haven’t taken legal advice, we give you access to ours.

• Practical advice without the need to over complicate

• Our own IR35 assessment tool to help produce an SDS (Statement Determination Statements)

• Qualified IR35 consultants to review your working practices and roles offered to contractors with Limited company’s

• Provide training for your teams to ensure that contractors are correctly engaged

• Deliver robust and alternative solutions if the contractor is assessed inside IR35 ( please see  ReWorked pages on this website)

• Offer an outsourced IR35 compliance service which allows you to let us take the risk on your behalf and act as the fee payer

• Taking on your liability to mitigate the risks when you outsource your IR35 compliance to Pendragon

We do not provide accountancy services or Ltd company set ups, so we are completely focused on the compliance.

Call one of the team to book your free consultation on 01992 267 067 or email

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0800 888 6066

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