13. 06. 2024

Clients still confused by IR35, read on...

Confused by the risks of IR35, cautious about using contractors?

Many companies that use, or used to use, contractors as a flexible resource are still unsure or confused as to the rules and the risks involved around IR35.

GSA Techsource has worked with numerous public and private sector clients since the off-payroll rules came into effect – that’s since April 2017 for the public sector and April 2021 for the private sector.

Knowing when the rules apply, and if they do, how to correctly determine the status of a contractor can be confusing.

With many in the industry dubious about the accuracy of HMRC’s own status tool, CEST, and even more dubious about their claim that they will stand by the output, this can add to the confusion and anxiety.

GSA can help guide you through this this minefield, and even be in a position to let you know the decision doesn’t apply to you, and is still for the contractor to make their own determination – if certain criteria fit you as an SME.

If the off payroll rules do apply, GSA insists on, as a contractual requirement, the use of Kingsbridge, for both the determination and for insurance to cover status enquiry defence costs, taxes, interest and penalties. This is at no cost to the client.

The cost to the contractor is small, but the protection significant, with the ongoing use of the status tool covered by GSA.

The benefits are extensive, and not having cover would pose an immense risk, no matter how clearcut a determination might be. There is a very real risk of an investigation that may prove costly to defend.

If you are considering taking on a contractor, but are concerned about IR35, or you need additional help and protection, please contact us, we’re here to help.