With less than six months until IR35 reform is enforced in the private sector, the two renowned sector specialists have partnered, which will see the firms working with agencies and engagers to conduct expert IR35 status reviews. For contracts deemed inside IR35, Parasol will offer trusted umbrella solutions to fee-payers.
IR35 reform will be introduced in the private sector on 6th April 2020, resulting in medium and large companies becoming responsible for determining the tax status of the contractors they engage. As part of these changes, the fee-paying party, which is often the recruitment agency, will carry the IR35 liability.
Parasol Group, that works with over 3,000 recruitment agencies in the UK, undertook a thorough review of options for status specialists and determined that Qdos offered the most secure and comprehensive service. Qdos were prominent advisers in the reform to the legislation in the public sector in 2017, working with numerous public sector bodies and recruitment agencies.
“We’re delighted to be helping more than 3,000 agencies minimise their IR35 risk by accurately determining the tax status of the tens of thousands of contractors they place in businesses,” said Qdos CEO, Seb Maley. “Our partnership with Parasol Group is an important step towards helping the recruitment industry successfully manage next April’s changes while also ensuring contractors have their tax status assessed correctly.
“Given Qdos conducts on average 2,000 IR35 status reviews every month and has handled more than 1,600 IR35 investigations, we have vast experience and a proven track record when it comes to IR35 compliance. Our knowledge and this partnership will be vital in protecting agencies and contractors and allowing end-clients to continue engaging these workers compliantly – whether outside or inside IR35 through an umbrella company.”
Mark Beal-Preston, CCO for Parasol Group, commented: “As IR35 reform approaches, it’s vital that contractors have their tax status determined correctly – not just to protect the fee-paying party but to ensure independent workers are taxed fairly and accurately. Working alongside Qdos Contractor, we are best placed to help thousands of businesses and in-turn, the contractors they engage, to manage the proposed reforms in a fully compliant manner, minimising any potential disruptions to projects or access to a contingent workforce.”
When talking about the justification for this partnership, Beal-Preston said: “A recent survey we conducted with over a 1,000 contractors highlighted how less than seven per cent used the CEST tool to determine their IR35 status, so we’ve partnered with Qdos Contractor as a credible alternative to offer greater support to the industry. In light of some recent high profile cases, we also felt it was crucial to act now to prevent more companies making unnecessary blanket bans or determinations which ultimately could see them driving up costs and missing out on some of the UK’s best talent.”