What you Must Do to Comply with IR35?

What you must do to Comply with IR35?

As someone in a hiring position,
it’s important you start with the following:

Familiarise yourself with HMRC’s Good Work Plan and keep up to date with upcoming changes.

HMRC recommends that businesses should start reviewing internal systems such as payroll software, process maps, HR and on-boarding policies to see if they need to make any changes.

Ensure your contractor’s professional indemnity insurance
(which is a good indicator of a contractor’s IR35 determination)
is present and sound.

Identify agencies that supply labour and obtain details
of those not under the agency PAYE system

Look into IR35 insurance as employers are liable for any under deductions of PAYE/NIC, plus interest and penalties if they get it wrong. IT Directors and Managers will also need to put in place appropriate actions to ensure that the new IR35 rules can be applied.

Alternatively, if this all sounds like too much responsibility you can either;

Pass responsibility for the recruitment of IT Contractors back to HR for them to manage, but we appreciate that’s not ideal as it adds time and complexity to the process or

Alternatively, you can engage with a specialist partner who understands the needs of IT Directors and Managers as well as the IR35 legislation, allowing you to focus on your day-to-day activities.