A year down the line and not much has changed with regards to IR35 since it was last in the spotlight. However, whether or not you have formalised plans yet, a refresher never hurts.
Adapted from the HMRC website last year, here is our action list;
- Look at your current workforce to identify those individuals who are supplying their services through personal service companies. (we can help you clarify this)
- Determine if the off-payroll rules apply for any contracts that will extend beyond April 2021. You can use HMRC’s Check Employment Status for Tax service to do this.
- Start talking to your current contractors about whether the off-payroll rules apply to their role. Agreeing any amendments to the current contracts, packages and payment arrangements.
- Create an SDS - Status Determination Statement for each current worker, taking ‘reasonable care’ when coming to the conclusion. Share with both the worker and the next entity in the supply chain (us) Here is our suggested template - you will need to supply your own version of this document.
- Formalise the challenge process which allows contractors to challenge determinations. A 45-day period, which before this period lapses, an End-Hirer must inform the worker or Fee Payer if the decision cannot be overturned or, if it can, provide to the worker or Fee Payer a new SDS with a new determination and supporting information.
- Put processes in place to determine if the off-payroll rules apply to future engagements. These might include who in your organisation should make a determination and how payments will be made to contractors within the off-payroll rules.
Over to you.
The clock is ticking, the time to act is now. Please don't forget that our payroll service is available to you, should you need to outsource.
You consultant will be in touch with you over the next few days to clarify the process with you. In the meantime if you have any questions, please don’t hesitate to contact us.
Here are a few links you may find useful.