Facebook Pixel Code

IR35: Move forward with confidence

Vetro has teamed up with Workr to keep you compliant

Businesses are losing out on talent. Unable to assess contracts on a case-by-case basis, they’re being passed over for competitors or running the risk of penalties. But we’ve got the solution, Vetro has teamed up with Workr to keep you compliant, review your supply chain.

Why is it changing?

HMRC felt that too many businesses were getting away with underpaying tax. So, in April 2017, contracting in the public sector changed. It is now the public authorities themselves who determine the status for each project: inside IR35 or outside IR35.

From there, they issue a ‘Status Determination Statement’ to the recruitment agency to either agree or disagree with the status, before forwarding it to the contractor or freelancer to do the same.

What about the private sector?

From April 2021, medium and large businesses will need to determine the status of all their contractors. For now, small businesses are still exempt.

If your contractors are found to be operating within IR35, you’ll need to deduct the Income Tax and NICs from their salary. You can do this with tools like CEST, but this is considered unreliable. 

What does this mean for my business?

In terms of future contracts, you have two choices:

  • Class everyone as inside IR35

  • Judge them on a case-by-case basis

Choose the former, and you may lose out on talent. Choose the latter, and you’ll need the resources to manually assess each contract every time you recruit a contractor (although this is something we can help you with).

If an individual is found to have been incorrectly categorised as outside IR35, HMRC will expect to receive the unpaid PAYE tax and NICs, as well as any late payment penalties and interest.

Our partnership with Workr

As an agency, it’s our responsibility to keep both our candidates and clients in the loop when it comes to the IR35 reform. And it’s for this reason that we’ve partnered with Workr Group. 

Workr’s expertise has awarded them Freelancer and Contractor Services Association (FCSA) accreditation, demonstrating to freelancers, contractors, and recruitment businesses that Workr acts both professionally and ethically within the UK tax, employment, and regulatory laws.

Their compliance team is equipped to effectively assess any contract and protect your business. Here’s how it works… 

Easy contract assessment

Few businesses have the time to review every contractor on their books. We help streamline the process so you can still appeal to top talent.

Supply chain review

If you’re unsure of the status of your current contractors, Workr will review your team and advise you on what to do next.

Hospitals

Help! I'm losing talent! What can I do?

Firstly you need to identify why you are losing talent. Whilst they might be impacted by the changes in IR35, there might be more to their situation.

IR35 for Private Hospitals

Can I amend my policy on IR35?

All public authorities and medium and large-sized clients outside the public sector are responsible for deciding if the rules of IR35 apply.

Private Hospitals

IR35 is not my responsibility!

The new legislation has made compliance your responsibility. If a wrong decision, you (the client) will be responsible for paying the tax owed to HMRC.