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Although the IR35 private sector reforms are now well-established, organisations must stay vigilant and proactive to remain compliant and avoid costly mistakes.
Now that IR35 has been embedded in the Private Sector for several years, the focus should be on maintaining a robust, long-term approach to compliance.
The attention is in the detail
Reasonable care is a term favoured by HMRC. If you’re not already familiar with it, it’s about ensuring an organisation has taken the right level of care and attention to get IR35 right. If challenged, businesses will need to show that they’ve taken the time to ensure their Hiring Managers understand how to make accurate determinations. They’ll also need to have the right processes in place. This means reviewing status determination statements (SDS) where there are any material changes to how the worker is engaged. For longer term contracts, it’s also best practice to check the SDS at periodic intervals to ensure it’s still accurate.
To stay compliant, organisations must continue to factor IR35 reviews into their routine monthly and quarterly operations, keeping processes active and up to date.
Candidate experience is key
Did you know that IR35 could potentially harm your talent acquisition efforts? Incorrectly advertising the IR35 status of a role could mislead candidates and lead to potential legal and financial difficulties if HMRC deem the status as incorrect.
Working with an independent and impartial IR35 specialist will provide your organisation with the knowledge to make correct status determinations, helping you to onboard candidates successfully and keep your business compliant in the long run.
Retaining the IR35 knowledge
IR35 is another piece of legislation that Hiring Managers and HR teamsneed to manage – alongside many others. So, it’s important that their knowledge of IR35 is kept up to date. Planning in refresher training and ensuring new starters are walked through the finer details of your IR35 processes – all need to be factored in. As new case law is released and HMRC make changes to legislation, training will need to be kept up-to-date. This is why it’sa good idea to use an external provider to support with training, ensuring your materials are always accurate.
Find a partner that can support you with compliance
Linx, part of the NRL Group, work with global engineering companies to ensure their operations remain IR35 compliant. Drawing on their workforce solutions expertise, they develop robust supply chain auditing processes, to ensure IR35 is understood and compliantly delivered at every level. From reviewing internal hiring processes, to checking supplier protocols are working effectively.
If you’d like to find out more about their IR35 services, head over to their website using the link below.
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