IR35 Audits – Fail to Prepare, Prepare to Fail
Before embarking on IR35 Audits – reviewing your off-payroll workforce, it is vital that everyone involved in the process understand 3 key points:
- What the review process entails;
- What it means if an engagement is inside / outside of IR35; and
- What ‘good’ looks like for your business.
Contractors have been living with IR35 for over 20 years and have been reviewing their IR35 positions regularly throughout this period. This gives your contractors a head start on IR35, compared with hiring managers who are just starting to be introduced to the legislation implemented in 2000 and the concept of disguised employment.
Therefore, a crash course in IR35 for managers is crucial to successfully preparing for April 2021. Understanding what IR35 is; why IR35 exists; what ‘inside IR35’ and ‘outside IR35’ means in practice; and what a ‘good’ contractor engagement looks like.
By having this basic knowledge, managers are better placed to complete these IR35 audits and suggest changes to an engagement to achieve outcomes which work for both the business and the contractor. It also gives managers the ability to empathise with contractor challenges if they arise later in the process and ensure that future roles are shaped appropriately for the type of worker/engagement being sought.
Helping you with more than just IR35 Audits
Our solution doesn’t just help you complete IR35 audits on your flexible workforce, but goes as far as helping educate your managers and key personnel in the business so they can competently manage this process going forward. IR35 is going to become an ongoing requirement for all businesses and understanding it will be vital in helping your business succeed at attracting and retaining the best flexible workers.
About Carl Henning
Carl is a solicitor and employment status expert, having spent the last 20 years advising individuals, recruitment businesses and hirers on IR35. Carl trained with international law firm DWF LLP, and has worked with Brookson since the inception of IR35 in 2000. Carl’s primary role is to provide technical oversight of the legal team to ensure that advice given to clients is up to date and in line with current legislation, case law and HMRC/regulatory guidance.