Are you prepared for IR35?

April 6th and the changes to IR35 Off Payroll Working rules are very much on the horizon. The pandemic last year meant that this legislation change was delayed, and we all took a sigh of relief knowing that we had some extra time to prepare.

Hopefully, you’re in a position where you feel comfortable with the changes that are soon coming about, but if not don’t worry. We’ve put together this guide with some tips on how to plan ahead.

Firstly, what is IR35 Off Payroll Working?

IR35 is the tax legislation aimed at preventing tax avoidance schemes. Focusing on off-payroll contractors who supply their services through an intermediary; known as Personal Services Companies.

Here are some key dates to be aware of:

· 2017 - Off-payroll rules were introduced into the public sector

· March 2020 - HMRC suspends implementation of IR35 into the private sector, due to coronavirus

· April 2021 - Off-payroll working rules apply and Private Sector businesses will be responsible for determining the IR35 status of its off-payroll contractors

Now, how to plan for IR35

Last year we were given an extra year to prepare for the storm that is IR35. But if you still feel unsure about how to proceed follow our three simple tips:

· Don't leave planning until the last minute (Monday's are already pretty hectic, let's not add to that stress on Monday 5th!)

· Analyse your current processes

· Don't put in place a blanket ban

Make each of your decisions case by case to establish which contractors are inside or outside of IR35. To avoid a short turnaround or skills shortage, examine your current processes and existing contractor workforce. Assess the risks posed. Take this extra time to determine the criticality of your contractors’ role in your business.

Can you afford for your contractors not to come back to work in April?

Things to consider

Talk to your contractors

The responsibility of deciding the IR35 status of contractors lies with the end hirer. But your contractors are going through the same thing as you. So, simply talk to them. This will boost your company reputation and decrease the chances of losing valued contractors.

HMRC wants to see that you have taken reasonable care

A full review of all current and future contracts should be carried out. This will allow you to assess, in good time, whether your contractor’s status needs evaluating. HMRC will also look at the details of your contractor’s engagement. So, also include a review of your non-contractual working policies.

Document any policy and practice changes made

Policies, practices and decisions regarding your contractors status need to be documented correctly. Should a claim arise, you will need to show HMRC that you have procedures in place that are aligned with IR35 Off Payroll Working legislation.

The impact of the new rules are significant and at Kelly we are making sure we’re on hand to support both our clients and contractors. If you’re after some advice on how to plan and prepare for the up coming changes contact one of our Kelly team members at info@kellyservices.co.uk.

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Navigating Career Crossroads: Your Guide to a Fulfilling Your Next Career Move!

12 Feb, 2024

In the ever-evolving landscape of the professional world, many of us find ourselves at crossroads, contemplating a change in career or seeking new opportunities to ignite our passion.

September Surge – Our Top Tips for Job Seekers

by Shazamme System User • 07 Sept, 2023

Summer is over. September is here. For you lovers of the summer, this can often bring feelings of the blues, but September can represent a time for a fresh start. This time of the year can offer many opportunities for job hunters to find a new job that aligns with their skills, goals, and experience. Check out our top tips on how you can land your dream job this time around (and why you should work with Kelly). 1. Get Clear On Your Goals First and foremost, you must have a clear objective of what you want for your career. Searching for a new job can bring feelings of excitement and motivation but it can also be overwhelming for applicants. Having an idea of what industries, you would like to work in, the timeline in which you would like to find a job, and the companies you’re interested in will reduce those negative feelings but will also give you a sense of direction and focus. 2. Update Your CV The next thing you should look at is improving and updating your CV. Have you demonstrated your most valuable skills? Have you highlighted your most important accomplishments and achievements? Have you included your personal websites, business profiles, and your LinkedIn profile? These are some of the many things to consider when updating your CV. Job applicants should also keep in mind that you should adjust your CV for every job you apply for. You should customize your CV so that it reflects the job you’re applying for. 3. Work with a Recruiter Are you aware of the benefits of working with a recruiter? Recruiters are experts in the hiring industry. They can help save you a significant amount of time during your job search as they know exactly what jobs are available in the market and they can match you with a role that aligns with your experience. Recruitment consultants can help you improve your CV and cover letter as well as make sure you are prepared for interviews. If you would like to read more about the benefits of working with a recruiter, click here . September is an excellent time of the year to find that new opportunity that you have been longing for. By following these tips, you should be on the right course to navigate the job market and find a role that suits you. It’s important to stay positive during your job search as it can sometimes be a lengthy process. But just remember, the right opportunity can take time. If you would like assistance during your job search, please do not hesitate to reach out and email us at info@kellyservices. co.uk. Or click here to search our latest vacancies and apply today!

Change. How to turn your fear into fuel for a rocket move and wake up in a different reality.

28 Aug, 2023

Rephrasing the famous song, “Love is in the air”, let’s talk about change is in the air – and everywhere. We grow. We change. Look at your childhood photos. Watch your kid, your nephew, your niece. The change is there, and it’s incredible. Nature is constantly changing. We wait for summer as the time to enjoy outdoor activities and gardening, for a quick visit to the beach, or simply take time to relax and spend time with family, friends and loved ones. We wait for winter (even if we never see snow falling) to decorate the house for the holidays, pack presents for the people we love and unpack our own. The colour of the leaves changes, the weather shifts, and flowers blossom in their time – the landscape is constantly transforming. The world around us is changing. We travel to other countries and learn new things, cultures and languages. We take on new hobbies. We get new skills. After a couple of minor kitchen accidents (sometimes), we can cook delicious dishes and get compliments from family and friends. We transform our bodies at the gym or simply by creating the habit of walking every day. We meet new people, we sometimes fall in love, we build families, we have kids. And if you step back for a second, you realise you might have met your other half by pure accident. But you took a leap of faith into the unknown. We embrace many types of unknown change, except for the one that can change how we live five days a week – to change jobs. “I am too old/too young to change”, “I’m used to this environment; It’s my comfort zone”, “Well, I don’t get any promotion, and what I do doesn’t change the world, but it’s stable”, “I am afraid to ask for more interesting projects. What if my manager fires me?”. We often don’t want to change because that step requires a vision, courage, external support, and a leap of faith into the unknown. Scary? Yes. But also promising. A step into the unknown? Yes. But it can open a new door. Do your inner values marry what you do? Yes, it is essential. There is nothing terrible about staying in your comfort zone. At some stage of your career, staying put can be an excellent decision. But if you feel that you need a change – talk to Kelly. We don’t mind going the extra mile and support your wish to embrace the change. The one which will give meaning to what you do, feel proud, motivated and fulfilled. Ready for changing? We’ll make sure your talent can truly shine.