Check out our top 5 tips to make sure you and your business are ready for the big reform…

IR35’s private sector move has remained a highly debated topic since the public sector reforms back in 2017. Originally planned to come into effect in April of 2020, all-encompassing COVID-19 restrictions have exhorted a degree of leniency on HMRC’s part. With the decision to delay the reform by one year, lockdown has bought private businesses a little more time to prepare. The changes have now been pushed back to 6^th April 2021, however as we move into the new year, time is almost up as the countdown now begins. With less than 12 weeks to go, the time is NOW to tighten up your compliance strategy and ensure you’re not caught out. Follow these 5 easy steps to make sure your business will be safe and not sorry for IR35…

IR35 can seem like a minefield at first, and the added threat of fines for non-compliance may cause you to feel helpless in the face of the reform. Luckily you don’t have to go it alone as there are expert specialists out there who can offer you tailored advice and help you get it right case-by-case. Learn from the best and tackle IR35 head-on.

2) EDUCATE: get internal management on board

Get your internal management team on board by informing them in detail on IR35 regulations. This will ensure that there are more than one pair of eyes on the supply chain at all times keeping compliance in check. Educating your team to articulate potential risks will allow you to identify issues earlier on and avoid later run-ins with HMRC. 

3) EVALUATE: take a step back and assess the mess

Review your existing workforce from head-to-toe and identify any potential risk factors in advance. Be sure to consider your whole contractual supply chain including:

• Payroll Intermediaries
• PSCs
• Agency Vendors

Make sure you don't leave any gaps in your evaluation so that you're fully aware of how the reform will affect your business specifically in practice.

4) IMPLEMENT: enforce streamlined solutions 

With your carefully considered evaluation, apply your knowledge to formulate an effective strategy for case-by-case assessment. It may be tempting to resort to a panic-driven blanket-ban however HMRC has deemed these to be inappropriate so it’s important to perfect your process. Find a time-efficient and streamlined solution allowing you to get back to business ASAP whilst operating compliantly.    

Consulting solid data when making decisions and assessing potential risks will provide a more pragmatic framework to your strategy. Using relevant and real-time data will enable you to instil compliant behaviour all the way through your supply chain and as an added bonus will set you up to rebuff any potential challenges from HMRC.

Don’t let confusion catch you out this April. Get to know the reform and start preparing to ensure your business can operate compliantly and successfully this coming spring. The clock is ticking so act now!  

To learn more about how best to manage your IR35 compliance strategy, please contact us.