16 working days to April 6…
IR35 reforms are on the horizon and they will disrupt the recruitment of contractors for public sector companies. The extra administrative burden of assessing the employment status, calculating, deducting and paying the tax falls on the shoulders of intermediaries like recruitment companies. At the same time, with a large number of PSCs choosing to avoid engagements with public sector bodies, the task of finding contractors to fill the vacancies is going to be doubly difficult.
In a bid to make compliance easier, a few public sector companies are banning PSCs outright. Others will put in place stringent procedures to ensure that no PSCs that claim to outside IR35 actually fall within IR35. Recruitment companies that work with both types of candidates will have to evolve mechanisms that ensure compliance while speeding up the process.
While some of the PSCs working today may agree to work as a part of an umbrella solution, many will want to continue as PSCs, choosing engagements that support their status as a self-employed contractor. Others may want to work on both types of engagements. If your recruitment agency doesn’t want to lose the candidates that want the option to work on a variety of engagement types, you need a solution that can satisfy their unique needs.
Does your IR35 solution provider offer both the options?
We work for some of the leading staffing agencies in the UK and have been preparing for the IR35 reforms for months. Our experts have been visiting recruitment agencies in the UK, offering specific advice tailored to the specific scenarios faced by the company. Please get in touch with us for a free, no-commitment chat around the challenges raises by IR35 reforms and possible solutions.
Call 07870 678 557 or email firstname.lastname@example.org.
Call 0758 4651087 or email email@example.com.
Other important IR35 related questions recruitment agencies must ask:
- How will the Apprenticeship Levy impact your recruitment agency?
- Are your clients and contractors aware of all the changes that are happening?
- How many public sector agency workers will be lost due to IR35 reforms?
- Is umbrella really the best option for your contractors and clients?
- Will contractors ask for higher pay rates to offset the Employer’s NI?
- Do you have a plan in place for paying the invoices for work done before April 6?
- Have you checked out the public beta version of the ESS digital tool by HMRC?
- What is the best IR35 solution for recruitment agencies and contractors?