Following the publication of HMRC’s draft legislation for off-payroll working in the private sector, global leader in talent acquisition and managed workforce solutions, Guidant Global, has published a useful advice guide for employers.
In ‘The potential impact of IR35 in the private sector’ guide, Guidant Global expresses that it’s hard for all HR, procurement and finance leaders to really know where they stand unless they can grasp the real-world implications of this tax reform. The company advises businesses to start their projects now to ensure that they are fully prepared for the roll out in April 2020.
Status determination will be a major concern, and Guidant Global advises that businesses should plan in advance how they will be carrying out assessments as despite modifications to the widely-used Government’s CEST tool, it still attracts criticism as a method of accurately assessing employment status.
Additionally, the workforce management group recommends that new policies should be put in place to accommodate the changes. Those involved in hiring contingent labour need to be trained and systems may also need to be developed to incorporate the new way of working.
It is widely recognised that businesses may need to consider increasing pay rates or look at other retention initiatives for contractors whose roles fall inside IR35 and as such Guidant Global suggests initial workforce analysis to identify critical workers is undertaken now in order to be fully prepared.
Commenting on the announcement, Claire Beasley, Head of Compliance and Service Excellence and IR35 specialist at Guidant Global, said:
“In the run up to the release of the newly drafted legislation, there has been much debate about what the potential impact of the proposals could be for contractors, businesses and staffing professionals in the private sector. Now that we have a better understanding of what the implications will be, businesses must not delay in beginning preparations, if they haven’t done so already. If companies are prepared for, and knowledgeable about, the upcoming changes, they can limit the chances of accidental non-compliance and ensure they are hiring in a better way.”
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