While the responsibility for determining a contractor’s IR35 status will sit with the end hirer when new regulations come in on April 6th, the rules will affect all parts of the supply chain. Recruiter’s will not be exempt from this and will perform a crucial role in ensuring contracts are compliant, and both contractors and end hirers are confident going forward.
SELECTING AND ADOPTING THE RIGHT IR35 SOLUTION
One approach that many end hirers may be tempted to take with regards to the new IR35 legislation is to simply stop engaging with limited companies. While this may seem like the most straightforward option, it can have a detrimental impact on your preferred supplier list (PSL) as a recruiter.
In order to avoid this, it’s worth working with an IR35 specialist like Brookson to help end hirers understand the options available and put a proper IR35 process in place. If not taken seriously or done correctly, your agency could lose talent or even face fines from HMRC. Choosing a compliant payroll solution for ‘Inside’ roles is vitally important to avoid the risks of the Criminal Finance Act.
BUILDING RELATIONSHIPS WITH TOP TALENT
Attracting and retaining top talent is vitally important in being a successful recruiter. In order to do that you must demonstrate to contractors that you can support them in the new IR35 world, building a relationship of trust and confidence. Top contractors will want to work with end hirers that have a proper IR35 process in place and don’t automatically discard limited company workers. Ensuring your clients are reviewing each contract role is key to retaining and attracting talent.
BECOMING AN OUTSOURCED COMPLIANCE VETTING HERO
As a recruiter you are no longer just trying to find the right worker, you’ll need to hone your skills to become an outsourced compliance vetting hero, taking a wide range of factors into account. These include the implications of working with an unregulated umbrella company, applying the right IR35 solution to each contractor and making sure everything complies with the Criminal Finances Act.
RECRUITER’S EDUCATING CLIENTS ON IR35 COMPLIANCE
Helping end hirers to navigate the new IR35 regulations will be an effective way to demonstrate added value. By working with a tax specialist, you can help clients identify compliance gaps and how to resolve them. This will ensure projects can run smoothly and avoid anyone in the supply chain being opened up to tax risks.
THE BRIDGE BETWEEN CONTRACTOR AND END HIRER
Being the link between the contractor and the end hirer gives you, as a recruiter, a unique opportunity to oversee the IR35 situation for any given contract. It’s up to you to ensure the lines of communication remain open, as determinations are made and relayed to the relevant parties.
We understand that this is a lot to take in and can often be challenging to get your head around. This is why our agency team is on hand to help!