Jenni Bates, RED10’s CFO and IR35 expert, is laying the ground for us to understand what to expect from April 2021 onwards, and how is best for clients to still have access to the best talent and be IR35 compliant.
What to expect from April 2021 onwards in terms of IR35?
The IR35 reform deadline date of 6th April 2021 has been cemented and, with just a few months to go, time is quickly running out to make sure you have a fair, efficient process in place.
Companies will need to determine contractors IR35 Employment Status before and during their engagement while issuing an official Status Determination Statement (SDS). This may cause hassle to many companies and drive them into making IR35 blanket assessments. A “blanket assessment” is where an end client decides to treat all contractors as being inside IR35, rather than assessing each one individually. There are many risks with this and not only failing to take reasonable care; therefore, a good and fair IR35 process is necessary.
Why is it important to have a good IR35 process in place?
It will be definitely the wrong decision to follow a risk-aversion path. Those that invest in a good IR35 process and fair, accurate status determinations will absolutely be the ones to get the cream of contractors come April next year. A good IR35 process can provide a flexible workforce outside IR35, compliantly and confidently, to address your needs at a current point in time.
As an IR35 expert, what is the best way to manage an IR35 process?
For me, it comes down to three things – knowledge, collaboration and the right tool.
At RED10, we fully understand the burden that our clients will have from April onwards. Therefore, working with a recruiter that fully understands how to be IR35 compliant can help you take away the hassle and provide full transparency across the supply chain.
It is a process that needs collaboration between clients, RED10 and contractors to assess and determine the IR35 Employment status correctly.
Accuracy and efficiency are key. That’s why we carefully selected to partner with Kingsbridge, an IR35 Status tool to provide the necessary expertise and certainty. It also enables our clients to have full control and transparency over all determinations made.
What does RED10’s partnership with Kingsbridge mean for your clients?
Our partnership with Kingsbridge means that our clients can have access to our portal and engage with us to run IR35 assessments on all contractors they require– fast, efficient and accurate. Using this tool, we will work with the client to assess not only the contracts in place throughout the supply chain but also the actual working practices. All RED10 contractors will also work on the process to ensure they have full validation of any tax determination made. The client authorizes each individual status to ensure that they adhere to the requirements of the legislation. In addition, knowing that Kingsbridge will insure against all ‘outside determinations’ via the tool, for the entire supply chain, is exactly what businesses need in these uncertain times.
The tool gives all parties access to real-time reporting and IR35 specialists to access indeterminate status results. Essentially with this cutting-edge status tool, we are streamlining a very complicated process.
It was so important to RED10 to partner with Kingsbridge, they are specialists in insurances for contractors, and we believe their deep-rooted knowledge will assist all our clients and contractors through 2021 and beyond.
Learn more about Kingsbridge https://www.kingsbridge.co.uk/