Guidance

With changes to IR35 now in place in the Private Sector, there’s no better time to arm yourself with our free FAQ’s, Guides and Video guidance that you can reference whenever you need.

Firstly, and amongst other things, those recruiters are likely to see their clients looking to them for advice and support regarding their new obligations and those recruiters without the necessary knowledge to support their clients will have to find that expertise elsewhere (Brookson Legal can help). Secondly, recruiters are quite likely to see some of their contractors, particularly those who have scarce skills and who are deemed to be “disguised employees” by their hirers, seeking improved day rates, which might lead to a squeeze on agency margins.

There is a commercial risk and challenge that derives from the change. You may have noticed an increase of questions from candidates regarding their IR35 status and clients will have wanted you to help them with the compliance challenges.

There has been much publicity, quite rightly, on the hirer’s obligation to employment status test contractors, and on the tax risk which comes with not taking reasonable care. However, the legislation still says that it is the fee payer (which will usually be the agency) who must deduct the correct Income Tax and NICs. So this means that HMRC might pursue the agency, if it considers that incorrect Income Tax and NICs haven’t been deducted, even where the agency has followed the instruction of the hirer (who has acted with reasonable care).

Although HMRC have moved compliance to the hirer, and although it is the hirer who has the reasonable care obligation, the Public Sector legislation does not say that an agency has followed the hirer’s instruction is in the clear.

Download Guides

Written by our experts, these guides will give you the tools to understand the implications of IR35 as a contractor, recruiter or hirer.

Will workers you hire be caught by IR35

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This guide covers a number of key factors which will indicate whether or not contractors you engage are caught by IR35.

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Understanding IR35 in the Private Sector

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The Private Sector will be subject to changes to IR35 similar to those implemented in the Public Sector in 2017. Read what we think...

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Avoiding an IR35 Talent Drain

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What can UK business do to retain its contractor workforce?

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Videos

HOW DOES IR35 AFFECT RECRUITERS?

With IR35 now in effect, we explain what IR35 is, the changes and how this will impact businesses recruiters that place contractors.

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