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Industry-First IR35 Solution Proof that Reform can be Managed


Leading contractor tax adviser, Qdos Contractor and global professional recruitment group, Hays, have developed an industry-first IR35 solution, which proves regulatory reform can be managed effectively on scale, protecting thousands of public sector contractors and numerous vital organisations.

The answer to the IR35 reform has already been put to good use, with numerous central Government departments, local authorities and educational establishments all making use of the independent and impartial assessments.

Notably, some organisations who initially made ‘blanket’ decisions that their entire population of off-payroll workers were inside IR35 have since started utilising the process.

Having spent months developing the tool together, Qdos Contractor now provides an outsourced compliance facility to Hays.

Vitally, the solution allows public sector engagers to comply with the new reforms, enables fair and continued use of contractors working through personal services companies in the public sector, and ensures each contractor is given a fair, individual and expert IR35 assessment.

Seb Maley, CEO of Qdos Contractor commented:

“This industry-first solution is proof that changes to IR35 in the public sector can in fact be managed on a large scale and when it matters. It has been built to protect each party; the contractor, the agency and the public sector engager. It is serving its purpose, and has been instrumental in making hundreds of determinations.

“To ensure contractors aren’t unfairly determined inside IR35 it is vital that each engagement is looked at individually, and by experts. Blanket determinations and inaccurate IR35 decisions will simply deter contractors from working in the public sector entirely, severely impacting temporary hiring, while putting major public sector projects and services at risk.

“While we are now a few months into public sector IR35 changes, many recruitment agencies and public sector organisations are still wondering what to do.  Hays have been ahead of the game however, working tirelessly to ensure they can deal with the changes compliantly.  Unfortunately, there is no ‘quick-fix’ to the changes, and Hays were quick to realise this.  They helped shape the way we developed the process and the insurance, allowing us to create a solution that ensures all parties comply with their legal responsibilities, but are also able to make IR35 decisions based on detailed and expert advice.

“Nearly half of UK employers expect growing candidate shortages in 2017, so needless to say, contractors are in high demand.  I’m delighted Qdos Contractor has been able to provide what is an industry-first solution, and confident that this relationship will have a hugely positive impact during times of uncertainty in public sector hiring.”

Steve Witts, Group Head of Tax and Treasury at Hays, added:

“Hays has been at the forefront of discussions with HMRC surrounding IR35 public sector reform, and has been working with our contractors and clients to help them understand and respond to the new legislation. Within the public sector the level of confusion surrounding this legislation remains high, and long-held misconceptions are potentially driving the behaviour of key influencers within the public sector supply chain.

“However, as our clients would expect, Hays was swift to identify a potential future public sector client requirement for outsourcing the determination responsibility of which had been left to them, and therefore harnessed the expertise of Qdos Contractor in order to provide them with a seamless end to end service.

“Hays entered into discussions with Qdos Contractor in the early summer of 2016 to formulate a compliant solution that would protect both the public sector organisation and Hays from both financial and reputational damage, whilst ensuring a rigorous, yet efficient, IR35 assessment process.”


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