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Early analysis will give you a view of your current contractor processes and an indication of the IR35 status of your Personal Service Company (PSC) workers, giving you the opportunity to consider any scope for optimising business processes for off-payroll (IR35) compliance.
The term “Personal Service Company” is not defined in law, but it is used by the UK Government to refer to “someone who works through their own limited company” as opposed to someone who is self employed.
Steps may include familiarisation and study of the IR35 rules and contracts used by members of the workforce, as well as consulting experts where necessary. Above all, it is important to use the time wisely. The private sector has an opportunity to learn from the mistakes of the public sector and use the time awarded to prepare for and implement the changes that are posed by IR35.
In doing so, private sector businesses will be in a position to continue engaging contractors outside IR35 compliantly, while also minimising business risk. This process can be assisted via Redline's Status Determination Tool which is insurance backed by Zurich.
Train relevant internal resource on IR35
In order to effectively determine each status correctly, it is important for the relevant resources, such as HR, hiring managers and all those involved in the hiring process are trained on IR35, so that they are capable of following the rules. Each engagement should be reviewed on its own merit to avoid making ‘blanket decisions’. Whilst there may be similarities in the delivery of services within certain groups of workers, an assessment on IR35 is recommended.
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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 PLivingstone@RedlineGroup.com.