A Basic Summary of IR35
The responsibility for determining the IR35 status of a contract will shift from the limited company contractors to the private sector engagers and will be applied to all payments made on or after 6th April 2020.
Private sector businesses will be responsible for determining the IR35 status of all of their off-payroll workers, whilst the fee-payer (usually a recruitment agency) will be responsible for deducting the relevant tax and National Insurance contributions at source.
The new legislation will apply to medium and large businesses. For the avoidance of doubt to be classed as a small business you must satisfy two or more of the following:
1. Have an aggregate net turnover less than £10.2 million
2. Have an aggregate balance sheet total less than £6.1 million
3. Have less than 50 employees
So, what to do if you employ contract workers?
Before you do anything else download our free IR35 Demystified offline guide. It has stacks of useful information and guidance for you to share with colleagues and stakeholders.
You'll then need to ensure that you start on the 'pathway to compliance' by following these steps:
1. Determine the IR35 status for your contractor’s
2. Issue a ‘status determination statement‘ to both the contractor and the next party in the supply chain
3. Implement a ‘client-led disagreement process’ to handle any disputes in status decisions
Each of these steps should follow a set process which ensures a smooth transition for both the organisation and its workers as well as evidencing compliance with the guidelines set out in the incoming legislation.
To aid with the changes Talent has launched a Workforce Healthcheck for employers with concerns about changes or that need support in ensuring compliance.
Find out more about this below.
Our Workforce Healthcheck not only helps guide you through the IR35 changes but also provides analysis on governance, systems & procedures, talent acquisition and management information.
Download further information or speak to a member of the team by emailing firstname.lastname@example.org or calling +44 (0) 121 647 2601.
If you are struggling with legislation changes or compliance issues within your existing territory or looking to expand your reach get in touch with the team to find out how we can help.
Richard Earl founded Talent from a home office in September 1995, when things in Western Australia were still pretty quiet and the mining boom was yet to take off.
The Sydney office opened in 1999 in the midst of a dot com and Y2k boom, and quickly experienced the end of it. Today, it is Talent's largest office and company HQ, but it has kept its entrepreneurial spirit.
The Australian national expansion continued with the opening of our Melbourne office in 2005. Within two years we had added offices in Canberra, Brisbane and Adelaide and were ready for major growth.
In order to service trans-Tasman clients and and an emerging and innovative technology sector in New Zealand, we launched in Auckland in 2009 followed by Wellington in 2010.
As part of our growth strategy, Talent opens an office in London to service the emerging digital sector and slowly recovering banking sector.
In May 2013 at our “Unleashed” event in Sydney and with Sir Richard Branson in attendance, we announced our intention to transform the way we do business. In 2014, we launched the Talent Unleashed Awards with Sir Richard Branson and Steve Wozniak as global judges.
Talent RISE was born out of our vision to create a brighter future for today’s youth and ensure their enormous potential doesn’t go to waste, by providing education, training and life skills to enable them to gain purpose through employment.
Seeing a market opportunity Talent acquires Perth-based IT Consultancy Agile Logic, with a brief to create an IT consulting and delivery model based around independence, quality, and value. Agile Logic re-brands as Avec in December.
With clear evidence of an improving market, Talent expands across the UK with offices in Birmingham, Manchester, and Bristol.
Talent celebrates 20 years of business and continued growth.
Talent expands into continental Europe with offices in Amsterdam and Berlin, with ambitious growth plans to increase our European presence.
Talent expands into the rapidly growing US market. The first flagship Talent office opens in San Francisco.
Talent expands into the rapidly growing US market. The first flagship Talent office opens in San Francisco. In October, Quintet Partners announces an acquisition of a significant shareholding in Talent.
The Future for Talent
Digital markets are growing and technology is changing at a rapid pace. Watch this space as we continue to build on our vision to redefine recruitment...