IR35 has been the talk of the contract world for a long time and as things sit currently, following a 12 month delay due to Covid, it will be rolled out in April 2021.
Whilst the IR35 legislation is not to be ignored and will have a major impact across the sector, it does not prevent businesses from using contractors
The intention of the private sector IR35 reform is to tackle tax avoidance, ensuring both end-clients and personal service companies are paying the correct tax. The reality is that the underlying law will stay the same, so if an assignment is deemed to be outside IR35 prior to the 6th April 2020 then it should be outside post 6th April 2020. Genuine contractors will be able to carry on working outside IR35 after April 2020.
However, the reforms potentially place a new and significant tax liability onto the ‘fee payer’ in the supply chain. These are the companies that HMRC will now look to for the payment of taxes, fines and penalties, should an assignment be deemed incorrectly outside IR35. In some situations, the liability may transfer to the end-client.
Determination Tool & Indemnification
At Certus Recruitment we have, alongside our partners, Kingsbridge developed and rolled out a Determination tool which is exclusively available to clients of Certus Recruitment.
The tool enables us to work with our clients to determine whether a project is or is not within IR35. Further, it also advises what steps can be taken to change the details of an assignment in order to alter the determination.
Where the tool has been used to assess the determination of an assignment, Certus Recruitment are able to indemnify the entire supply chain from any claims made with relation to unpaid tax and/or penalties associated with the legislation.
Certus Recruitment Group IR35 Solution
Legal & IR35 Protect Cover
Using Certus Recruitment Group and Kingsbridge’s IR35 Solution:
Full legal expenses package that includes cover for: