Make IR35 work for you; how to retain and attract your best talent
IR35 changes in April 2021. Are you concerned about contractors going elsewhere? Some of the best talent will be looking for correct assessments and processes, which they will now be relying on their clients to provide. IR35 doesn’t have to be daunting but instead could be beneficial to your company, bringing and retaining the best skills to keep projects running smoothly all with the flexibility that is provided by contractors.
Understanding IR35 and the new changes is your best starting point. We have plenty of experts so feel free to ask us about any concerns you have at [email protected] or view our IR35 Hub to understand a little more. There is one main point you need to be aware of with this change and that is where the responsibility and therefore some of the risk will now lie. As of April 2021, it will be down to the fee payer to provide an IR35 assessment to all contractors working for the company, which in turn brings the risk with it.
It will NO LONGER solely be the responsibility of the contractor. It is yours.
With businesses already contending with the various challenges that the pandemic has presented it is not surprising that this may feel a little overwhelming, however, it is a crucial process to get right. In a survey of companies with 30-200 staff, 73% of them have classified themselves as having little or no process/system for the new IR35 changes.
There are many benefits to hiring contractors.
- Cost savings
- Specialist skills
- Ease of separation
- Temporary cover
- Start at short notice
- Ease workload for permanent staff members
Particularly with the current climate, having flexibility and an ease of separation allows you to not feel the need to take on a permanent member of staff but are still able to get projects completed, without overloading current staff members and while utilising specialist skills.
Temporary workforce makes up 22% of the UKs overall labour market, highlighting the importance of contractors as they support the economy and provide great benefits for companies in completing projects quickly and effectively.
Bearing this in mind, it would be desirable to retain those specialised skills and become attractive to future talents looking to be recognised as appropriate outside IR35 contractors. The most ideal way to demonstrate this is through case-by-case analysis of each contractor working for your company, giving the opportunity for each person to be defined for their individual work. Demonstrating a professional in-depth understanding of the legislation shows the value to which you hold contractors and deeming them a great asset.
This fair and informed process can be time consuming or confusing, however, there are plenty of experts that have handled IR35 for many years who are able to help clients and contractors alike. We have invested time and energy into understanding the best ways to make IR35 work for everyone involved. Specialists with clear resources and training are on hand with guidance to keep legitimate contractors working outside IR35 with ease and help take risk away from clients. Involving experts as well as the contractors themselves throughout the process can make it faster and clearer, alongside providing the opportunity for contractors to be involved in their own outcome.
To summarise: ways of retaining the best talent can be
- Having the in-depth understanding of IR35 (check out our IR35 Hub)
- Case-by-case assessments (avoiding blanket decisions)
- Open opportunities for experts and contractors to be involved in the process
This way of making IR35 work for you creates an efficient and smooth process with individual assessments showing care and attention as you make the company attractive to contractors, leading to the potential abundance of the best skills and talent to choose from.