A Manager’s Guide to IR35

Published: 28 February 2020

Author: Niyonu Agana-Burke

Category:

Managers have an integral role to play in making status determinations under new off payroll working rules applicable to the private sector as of April 6th, 2020.

As a team leader, supervisor or department head you will have a significant influence over the way your contractors work and are managed. It is likely that HR teams will call upon you to make status determinations, even before hiring for a new role begins.

Under the new rules, the ‘supervision, direction and control’ a client exerts over a contractor will be a factor in making determinations. And, if HMRC decide to take a closer look at a determination it will be the actual working practices that they will review, not just the contract or role description.

If you are a hiring manager, it is important that you take your role in IR35 seriously. Any determinations made without ‘reasonable care’ could expose your organisation to tax liability. This is also true where your working practices deviate from the answers you provided for status determinations.

We have put together a guide to help you understand your role in making determinations, how you can show reasonable care, and what you can be doing now, to prepare.

If you want to take your knowledge further download our Definitive Guide to IR35 here and book an IR35 consultation with us so we can support you in establishing your IR35 strategy and advise on the best way forward.

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