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How IR35 Comply can add value to your end clients

Alison Roberts

Alison Roberts | Legal Director

Wednesday 25th Sep, 2019

Be confident in your IR35 assessments with IR35 Comply

The purpose of IR35 is to ensure contractors are genuinely in business on their own account and are not ‘disguised employees’, in which case, employed levels of tax and NI need to be paid in respect of the assignment. From April 2020, medium and large end clients will be responsible for determining the IR35 status of a contractor. To avoid liability for any unpaid tax, they will need to demonstrate ‘reasonable care’ in determining a contractor’s IR35 status.

The pending legislative changes to IR35 mean clients need to act quickly to check the IR35 statuses of their off-payroll workers. There are many tools available on the market, including HMRC’s Check Employment Status for Tax (CEST) tool, however, the tool has been highly criticised and is due for enhancements before the end of 2019. As it stands, CEST does not align with case law, excludes key status indicators, and is widely considered to be unreliable particularly since HMRC is constantly tinkering with it.

This is where IR35 Comply comes in. IR35 Comply is an online IR35 review service, which combines an innovative IT workflow. This provides a solution for end clients and agencies alike. By using IR35 Comply end clients can ensure they have met reasonable care through outsourcing the assessment of a worker’s IR35 status to PayStream. Each of our reviews is completed by a member of our expert IR35 team. This is what makes our solution much more robust than other online automated tools, such as CEST.

  • Demonstrates reasonable care

    Robust IT system, overseen by an expert team of IR35 advisers who provide feedback in respect of each assignment, highlighting any strengths or weaknesses from an IR35 perspective.
  • Simple and easy to use.

    Clear and simple design that is easy for contractors, agencies and end-clients alike to navigate. It provides a clear Status Determination Statement and reasons for the decision.
  • Full audit trail

    Chronological record providing evidence of activities and the reasoning behind determinations.
  • Sign off and appeals process

    Ensure the accuracy of the specific information supplied by allocating the review to a member of your team who understands the working practices and can sign it off as being an accurate reflection of these working practices. Plus, a built-in appeals procedure to help you manage the process for those contractors that disagree with their IR35 status.
  • Reviewed by IR35 experts

    Each review will be overseen by one of our specialist IR35 advisers. They will contact the relevant parties to gather further information if necessary, to ensure a true reflection of the working practices on each assignment.

IR35 Comply is easy to use, covers all aspects of case law and is supported by an internal team of experts. It has been developed on the basis of over 14 years’ experience reviewing IR35. PayStream are compliance specialists that focus on exceeding expectations and delivering a quality service.

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Related article - A more in depth look at IR35 Comply

The rules introduced in April 2017 are being extended to the private sector. The responsibility for operating IR35 is shifting from the individual contractor to medium or large-sized clients and third sectors (such as charities) from April 2020.

Read more here
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