IR35 FOR AGENCIES

Reforms to off-payroll rules in the private sector are due to come into effect in April 2021. This means that the responsibility for determining a contractor’s IR35 status, and ensuring the correct taxes are paid, will switch from the contractor to the end hirer. Liability will ultimately rest with end hirers, but HMRC have made clear that they will often look to collect first from employment agencies.

We can help you get ready and mitigate the financial risks to your agency.

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What's happening?

The new rules will apply to large businesses in the private sector. While IR35 itself isn’t changing, the liability for ensuring compliance will be different under the upcoming reforms.

Previously, the responsibility for working compliantly and paying the correct taxes fell entirely on the contractor. However, under the new system, the end hirer takes responsibility for the IR35 assessments, but the agency is liable in the first instance for the repayment of unpaid taxes.

How will it affect you?

The end hirer must conduct a status assessment on each assignment, and pass the results of this on via a Status Determination Statement (SDS) to the agency and the contractor. But, the agency is the first port of call for HMRC should a successful challenge be made to an ‘outside IR35’ status.

This means it’s more important than ever for end hirers, agencies, and contractors to work together throughout the assessment process to ensure that every contractor is paid correctly and that your agency is free of risk for tax liabilities.

HOW WE CAN HELP

Complete supply chain solutions and guidance every step of the way.

Take your business forward with a practical solution – there is no supply chain scenario we can’t address. We have significant experience in IR35 legislation, and our accountancy service is led by Chris James, Chairman of the FCSA, so you can be sure we’re well equipped to provide tailored information and advice to your agency.

As well as proven experience in managing high volumes of PSC to Umbrella switching, you can also come to us for specific services such as comprehensive Outsourced Employment (PEO) if you don’t have the capability in-house.

Negotiating the IR35 reforms all starts with a reliable assessment, and we have our own instant IR35 assessment tool with insurable outcomes and complete transparency throughout the supply chain.

OUR SAMPLE ASSESSMENTS

Start preparing for IR35 with a free sample assessment.

Using our IR35 Complete assessment tool, we’ll assess a sample of your contingent workforce for free to help you determine how they will be impacted by the upcoming reforms.

With the information our free assessments provide, we can then assist you in developing an action plan to mitigate the impact on your contractors and ensure compliance throughout the supply chain.

Assessment tool

Manage your contingent workforce with complete assurance using our proven IR35 online assessment tool. Designed to give agencies complete control, our tool means you’re able to manage the engagement of contractors from status determination to payroll provider.

It is easy to use and quickly delivers reliable, clear, and insurable results for each individual assignment. Your agency can control the process, with all relevant parties interacting transparently to ensure a reliable status determination and complete compliance.

How it works

1.

At your agency’s prompt, relevant members of the supply chain complete a simple set of online questions to receive a HMRC-compliant status determination.

2.

Your agency controls the choice of Umbrella partners or Outsourced Employment (PEO) solutions which you want to present to the contractor.

3.

You have complete access to summary reports whenever you need them to ensure compliance and ease of auditing.

Let us show you how it works with a tailored online demo or read more in our assessment tool brochure

Our Solution: IR35 Complete

With IR35 Complete from JSA, we’ll provide IR35 assessments with insurable outcomes, giving you peace of mind that your contingent workforce is operating compliantly. Our seamless, end-to-end service delivers complete transparency and visibility throughout the supply chain which protects everyone’s interests.

We also offer a range of payment solutions to suit all parties and circumstances – whether you’re seeking an Umbrella solution for your growing ‘inside’ workforce, an Outsourced Employment (PEO) service, ways to mitigate risk for those who have received an ‘outside IR35’ SDS, or advice on how your end hirer can continue using ‘outside IR35’ contractors compliantly, we can help.

CONTACT US FOR MORE INFORMATION

How We Helped RGP

RGP is a global business with 2,400 clients across 70+ offices in 48 countries. The company was founded in 1996 to help finance executives with operational needs and special projects created by workforce gaps.

Knowing how much the reforms could impact their business, RGP secured a project manager to spearhead their preparations. Initially, legal advice suggested bringing more of RGP’s contractors ‘inside IR35’. However, there was significant concern that this was over-cautious and would have a detrimental impact on RGP’s clients, contractors, and business model.

We stepped in to help RGP take a more levelled approach. The shared goal was to ensure PSC contractors could be retained compliantly, while any contractor found to be ‘inside IR35’ was supported to understand the reasons for their change in status and guided through their options.

The key component to solving RGP’s problem was the implementation of a simple and instant IR35 assessment procedure with insurable outcomes. We also adopted procedures for maintaining clear communication of assessment outcomes between all members of the supply chain. This included regular updates surrounding changes to assignments as IR35 legislation dictates that all parties must re-assess workers at appropriate points.

Umbrella Employment Solutions

If the increase in ‘inside IR35’ contractors is diverting your attention towards payroll instead of focusing on your core activities, let us take this hassle off your hands with JSA Umbrella.

We’ve been operating Umbrella employment solutions for recruitment agencies and contractors for 30 years. In this time, we have seen and navigated all manner of changes in the flexible labour sector. At JSA, we value a partnership approach and we have long-standing relationships with many large recruiters who choose to work with us because of our commitment to compliance and great customer service.

Outsourced Employment Solution (PEO)

For many agencies, managing a payroll is a huge distraction. Our Outsourced Employment service is designed to be a simple, straight-forward way to manage your contingent workforce if you don’t have the capability in-house. You can outsource your payroll safe in the knowledge that your employees are getting paid accurately and on time, and your compliance responsibilities are taken care of. We’ll also look after all administrative areas including employment rights, benefits, and tax deductions.

You’ll pay the employer overheads and outsource fee from the contract rate, and the contractor will simply receive a payslip with their gross pay – so you benefit from less risk, reduced costs, reduced admin, and complete peace of mind.

Limited Company Contracting (PSC)

We’ve been operating specialist accountancy services for limited companies and small businesses since 1989. Our expert team are experienced in the financial needs of a limited company and can provide all the accountancy services your contractors require to set themselves up and work compliantly through their PSC.

If members of your contingent workforce plan to take on a mixture of ‘inside’ and ‘outside IR35’ assignments, we can help them toggle between PSC and Umbrella contracting. Our seamless service, insurable IR35 assessments, and ongoing reviews mean they can easily switch between PSC and Umbrella – it’s a great way to retain your contingent workforce by helping them to enjoy the best of both worlds.

TESTIMONIALS

Professional and efficient

Having worked with a number of umbrella companies over the years, Vicky Traynor and the team JSA stand out from the crowd due to the professional and efficient service that they provide to agencies and contractors.

Matt Randall

Fantastic team

I have been working with JSA for a while now more specifically with Maria Constantinou and their services are really amazing. The team is fantastic but I would like to say a big thank you to Maria for going the extra mile and assisting

Ernesto Gomes

Download our guide

If you are a recruitment agency and would like to know more about how you could be affected by the upcoming off-payroll (IR35) reforms, please download our comprehensive guide, outlining where you’re liable and how we can help.

TAKE A LOOK AT OUR EXPLAINER VIDEOS

IR35 assessment and liability for tax

In this short video, we help you make sense of responsibility for IR35 assessment and liability for unpaid tax.

What makes a good IR35 assessment?

In this short video we explain what makes a good IR35 assessment.

IR35 AND OFF-PAYROLL NEWS, ANALYSIS AND EXPERT OPINIONS

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