Dave Chaplin is CEO of IR35 compliance solution IR35 Shield and author of IR35 & Off-Payroll Explained. Here is his advice on how best to prepare for IR35
“The updated Off-Payroll legislation means private sector companies will be responsible for determining a contractor’s employment status for tax purposes, or ‘IR35 status’, and then tax the contractor’s rate as employment income if applicable. With around 60,000 businesses due to be affected and some 500,000 contractors running their own limited companies who will need their status assessed and monitored, this is a mammoth task.
“But, it’s where automation, in combination with expertise, can help to manage the process. I would advise firms to be sure to enlist the help of experts and solutions which have been tried and tested and expertly aligned with the latest IR35 legislation. And, by using software tools, firms throughout the supply chain can be assured that they can assess contractors quickly, consistently and get instant results. With the new COVID-19 lockdown and extended furlough, some firms are understandably pausing their Off-Payroll compliance until the New Year, but this will create a rush to providers in the New Year, which is where automation will become key to ensuring your business is compliant.”