Care and attention
IR35 determinations can be complex and time consuming, requiring specialist expertise and resources. Where these resources are not available, clients may control the risk by either making blanket “inside” determinations, or refusing to work with PSCs all together. This can leave contractors working inside IR35 when they should be outside, and those who have a choice will prefer clients who understand the importance of this issue and give it the care and attention it needs.
Individual IR35 assessments
It’s important that each contractor’s IR35 status is assessed individually. “Role based” assessments may form part of the process, particularly where a contractor has not yet been recruited, but these are for information purposes and cannot be used as a replacement for individual assessments. Well informed contractors will take a lack of individual assessments as a red flag, and many will simply look elsewhere.
Not relying on CEST to assess IR35 status
The Government’s Check Employment Status for Tax tool has been heavily criticised, for ignoring case law, giving inaccurate results and displaying a bias towards “inside IR35” assessments. In addition, HMRC’s promise to stand by the results has proved to only apply when they agree with them, so using the Government’s tool doesn’t actually provide any protection.
The news that a client is using CEST may alarm your contractors, unless you can assure them that it’s being used in conjunction with other resources, including opinions from genuine IR35 experts.
Getting help from IR35 compliance experts
Well-informed and experienced contractors will want to see a clear and robust process for assessing IR35 status, allowing genuinely independent contractors to work outside IR35 while avoiding the risks of non-compliance. The best way for most clients to achieve this is to involve IR35 compliance experts like Orang Genie Compliance.
With access to our assessment tool and our dedicated experts, your clients can quickly assess their contingent workforce and create an “IR35 friendly” environment, allowing them to safely engage more contractors outside IR35.