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IR35: The risks of not taking careful considerations

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Due care and Diligence

Part of the responsibility when determining IR35 is proving that an employer has taken due care in the process. From April 2020, private sector businesses will be responsible for determining the employment status of any Personal Service Company (PSC) or intermediary they engage with.

For private sector companies to be able to continue attracting independent workers in years to come, they should ensure they are in a position to make accurate IR35 decisions well before reform actually arrives.

Companies offering transparency and clarity will be better placed when the changes are introduced. In short, the sooner businesses start reviewing the status of the independent workers they already engage, the better.

Well-informed communications with your hiring community

Knowledge and education is important. The hiring community will need to understand the purpose of the IR35 legislation and the responsibility that comes with determining the IR35 status of engagements. Not only could you run the risk of failure of due care, but you may face increased time-to-hire and changing hiring costs.

Determining the IR35 status of engagments is a responsibility an organisation will not be able to avoid. Organisations will need to support the hiring community to ensure continuinity of the skills base required for business success. Companies should factor in that IR35 must be administered with reasonable care and equip themselves with the expertise needed to assess status on a case-by-case basis.

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Redline offer knowledge-led, tailor-made recruitment programmes to suit clients’ specific needs. We adopt a ‘partnership’ approach to ensure a detailed understanding of clients’ objectives and requirements. For more information regarding how we can help your business, please contact Peter Livingstone, Director of Contracts & Interim on 01582 878852 or email