Outside IR35 assignments have been a contentious issue since the introduction of the Off-Payroll Working (OPW) legislation in 2017 (public sector) and 2021 (private sector). With responsibility and liability for IR35 assessment transferred from the individual contractor to the engager, businesses that had traditionally utilised contractors and freelancers regularly became far more reluctant to consider it an option. In many cases, businesses ruled out the option of utilising personal service company contractors entirely due to the onus placed upon them by the OPW legislation.
However, with an impending increase in employment costs due in April 2025 and an uncertain economy denting business confidence, will using contractors and freelancers on an outside IR35 basis resurface as a viable option for businesses needing interim talent?
Status Determination Statements - An obstacle to business growth?
A critical component of the OPW regulations is the Status Determination Statement (SDS), which assesses whether a contractor operates inside or outside IR35. When a business seeks to engage a contractor who provides services via its own limited company, otherwise known as a personal service company (PSC), the engager is responsible for producing an SDS.
SDSs have proved challenging for businesses without the knowledge or experience to conduct an assessment effectively. If the assessment is challenged and found to be incorrect, businesses are exposed to financial risk. This risk has, at least in part, led businesses to avoid engaging with PSC contractors.
Stress-Free and Compliant Status Determination Statements.
For agencies looking to educate their end clients on engaging contractors on an outside IR35 basis, help is at hand.
Not only is there a large, relatively untapped pool of expert talent currently available due to outside IR35 reluctance, but Champion can also help make the SDS process more navigable and stress-free.
IR35 Resolve is a bespoke online supply chain portal designed to ensure full compliance with the latest IR35 regulations. It enables end clients to manage their determination needs effectively. All assessments, legal advice, and determinations are securely stored within the portal, ensuring easy accessibility for HMRC reviews if required.
The assessment process within IR35 Resolve is both thorough and user-friendly. It includes a full review of actual working practices and the contract for services, ensuring that all aspects of the engagement are considered.
For recruitment agencies, partnering with Champion Contractors and utilising IR35 Resolve can simplify the complexities associated with IR35 compliance and open the opportunity to access highly talented and experienced contractors.
For more information or to access IR35 Resolve, Champion's team of experts is always on hand to help and advise. You can contact them now at 0161 703 2549 or by email at info@championcontractors.co.uk.