IR35 Support For Your Business

IR35 Legislation changes come into effect on 6th April 2021.

Whilst IR35 legislation is a Tax Law, how does it impact HR?

Businesses now must ensure that when they determine an individual’s Employment Status, they must ensure they have considered all the variables. This has been highlighted recently in the Uber case where ‘Self-Employed’ drivers were eventually found by the Supreme Court to be Workers. This all came down to the level of control that Uber exerted over the individuals.

The common misconception now is that if a contractor works for other clients, then they should be safe for IR35 legislation. The reason this is a misconception is that in 2015, the Government abolished the exclusivity clauses that businesses were putting into Worker Agreement’s which stopped them working for other businesses at the same time. Therefore, workers can also work for multiple employers without the need for consent like some Employees would require.

How to determine if someone is impacted by IR35 legislation.

Unfortunately, there is no ‘simple answer’ to this question. Whether someone will be impacted by IR35 legislation all revolves around the level of control that a company exerts over the individual.

Common questions to ask yourself:

  • Is there a requirement for personal service to be provided from that individual or do they have the unfettered right to substitution?
  • Do you direct how they work?
  • Do you direct where they work?
  • Do you direct when they work?
  • Do you direct what uniform they wear?