Are you ready for the Off-payroll Worker IR35 rule changes being introduced in April next year?
There is now less than four months to prepare before the introduction of the new off-payroll rules for the private sector.
In April 2020, the legislation for Off-Payroll Workers (OPW) or contractors, known as ‘IR35’, is changing for private sector organisations
The responsibility for determining the employment status of OPW will shift to the employer, meaning you could now be liable for PAYE and National Insurance Contributions on your population of contractors
The new rules can be difficult to navigate. Your business will need to have processes in place to monitor your OPW, assess their employment status and manage the tax risk effectively.
Where the rules apply, the business or agency will be responsible for deducting income tax and National Insurance contributions (NICs) via PAYE and will be required to pay employer NICs.
So far, many publications have focused on the employee-based elements of the new rules, but the cost and responsibilities enforced on employers is also significant and should not be underestimated or ignored. Businesses must not underestimate the impact of IR35 and must begin taking steps now to ensure they are ready to apply the rules from April next year.
Simplify Change have partnered with PDCS to ensure we are fully compliant with future changes, as well as partnering with them to ensure our clients have put the correct procedures in place now to avoid any potential liabilities, while also ensuring that the contractors that they work with are fully aware of how the change will affect them.
Communicating these changes to our client’s workforce is an important element of conducting all the changes and it is where seeking the assistance of a professional, such as a PDCS, could prove extremely beneficial as we are able to utilise their specialist skills and expertise in advising both employers and individuals in relation to the new rules and the steps they need to be taking.
The journey to IR35 compliance can be challenging. PDCS ensures a single fully managed assessment and service to ensure all possible compliance scenarios are covered both Client-Side and Contractor-Side.
This allows us, and our clients to benefit from their experience in:
Compliance
Meeting and maintaining the requirements of IR35.
Risk
Demonstrate ‘reasonable care’ to maintain low-risk rating with HMRC.
Opportunity
IR35 Assessment presents an opportunity to address our clients' wider resourcing strategy to find the most effective way to create value from their people.
Monitoring our clients' employee population equips them with the confidence to make informed decisions, and automating their processes allows them and us to focus on other value-add activities.
Get in touch if you’d like us to work together to prepare you for the transition to the new environment, and smooth the transition process and following required audit requirements.
About PDCS
They have been advising clients on sourcing strategies since 1997 giving them a pedigree across a broad section of clients, technologies, and sectors. Their clients have been telling them that they want cost-effective and highly motivated resources to deliver real change and benefit with the knowledge that fulfills their business’ wants and needs.
Delivering Business Projects can be challenging, daunting and risky, especially with resourcing appropriate talent going through so much uncertainty and change.
We believe that our clients Project Organisation and delivery workforce should be optimised to assure they are efficient, compliant and scalable. PDCS helps do this by assessing your organisation's maturity as a measure of your ability to implement continuous improvement and resource your Project Management Office optimally.
PDCS uses the P3M3 maturity model*, which is a management tool used to diagnose root causes, assess current capability, and demonstrate improvement. It also acts as a roadmap to achieving performance targets and resource compliance.
Resourcing talent is now becoming more challenging with the IR35 tax legislation reforms to the private sector coming into force in April 2020 to combat ‘disguised employment’; as part of their assessment they undertake an initial appraisal using a combination of online questions, landscape evaluation, and documents/contracts to baseline your current compliance status, they then work with you to build an optimal workforce and third party supply chain profile to assure compliance, mitigate risk and develop an efficient, compliant, robust and scalable Project Office.
* P3M3 is a maturity model that measures an organisation's capability with regards to its portfolio, programme and project management practices. This measurement is expressed as a 'maturity level' that indicates an organisation's current capability in these practices.
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