When it comes to establishing IR35 / Off-Payroll status, it is recommended that a full and comprehensive IR35 contract review should be undertaken checking all contracts through the supply chain and the reality of the day-to-day working practices.
We offer a full support service for the Off-Payroll rules to all parties in the contractual chain in the public and private sectors, working closely with clients, agencies, contractors and consultancies to ensure compliance with the rules and assisting to demonstrate that the party has taken “reasonable care”, as required by the legislation.
Any business can call itself a “Consultancy”. When undertaking IR35 contract reviews we often encounter problems in this area with the need to establish if a consultancy is acting as a consultancy (supplying services) and is the client for IR35, or is really acting no differently to an agency/employment business in the contracting relationship and so is not the client for IR35. The difference is critical to deciding IR35’s current application.
We’ve had significant success when the Off-Payroll rules were introduced in the public sector in April 2017 and then rolled out to the private sector in April 2021, and managed to prove that many consultancies were exempt from the new rules, as they were providing genuine outsourced services which they were wholly responsible for, including any decisions on workers used and who held responsibility for and control over those workers.
However, great care needs to be taken in this regard to ensure that the Consultancy is genuinely providing services rather than people or any kind of a mixture of both.
With the new Off-Payroll rules for the private sector the only exemptions from the rules is for small companies and wholly overseas companies. We have already seen a significant growth in the small consultancy.
We offer a whole range of services to help all concerned parties with IR35/Off-Payroll compliance.
How Bauer & Cottrell Can Help:
- Join Bauer & Cottrell as an Associate for priority services and keep up to date with all things IR35 and Off-Payroll.
- Review your supply chain (including upper and lower contracts) to establish whether you are acting as a genuine consultancy and where the responsibility for IR35 lies in the chain.
- IR35 training – face to face, telephone or written material.
- Comprehensive IR35/Off-Payroll reviews and assessments, as required by the legislation and demonstrating “reasonable care”.
- IR35 helpline for use by your staff and possibly by your contractors.
- Assist you to implement your own internal IR35 assessment process if your preference is to keep this in-house.
- We can agree to independently audit/check a percentage of your own internal assessments e.g. a number of cases per month, half-yearly or annually or you could just involve us in the difficult cases to ensure that your processes and opinions continue to meet HMRC’s “reasonable care” requirement and are in accordance with up to date case law.
- If the legislation requires clients to provide an independent dispute resolution process we can provide/support this and can deal with contractors on your behalf.
A fixed or annual fee would be negotiated for the above, based on specific requirements. Please contact a member of our team today to discuss how we can help.
Let Bauer & Cottrell take the strain – we have been facilitating excellent relationships between consultancies and contractors for more than 20 years.