IR35 STATUS DETERMINATION, COMPLIANCE WITH THE ABILITY TO MITIGATE RISK

OPTIMUS SHIELD BLOG

IR35 changes are getting an abundance of press coverage. However, one thing that isn’t being covered is how changes to IR35 will affect recruiters with contract roles outside of the UK.

In a growing, multi-cultural business society, recruiters are increasingly recruiting for contract roles outside of the UK. How will changes to IR35 legislation impact recruiters and the businesses and contractors they work for?

What IR35 changes mean for recruiters with contract roles outside the UK

If recruiters are placing a UK candidate with a non-UK business, the responsibility for determining the IR35 status of the role (if the contractor has a limited company) becomes the recruitment agency’s responsibility and they must issue a Status Determination Statement (SDS) to all parties.

If the off-payroll rules apply (inside IR35) recruiters must:

  • Calculate the deemed direct payment to account for employment taxes and National Insurance contributions associated with the contract
  • Deduct those taxes and employee National Insurance contributions from the payment to a worker’s intermediary
  • Pay employer National Insurance contributions
  • Report to HMRC through Real Time Information the taxes and National Insurance contributions deducted
  • Apply the apprenticeship levy and make any payments necessary

We know all of this sounds a little daunting, especially when costly HMRC investigations are the consequence for non-compliance. But, Optimus Shield is here to help recruiters comply and mitigate risk to the whole supply chain, even for contract roles outside of the UK.

IR35 Status Indicator Tool 

Optimus Shield have built a robust IR35 status indicator tool, which allows recruitment agencies to:

  • Take a collaborative approach when determining the status of a contract
  • Provide a government required SDS to all parties within the supply chain
  • Mitigate risk to the whole supply chain by insuring the determination
  • Utilize our fee payer service where we take on liability

To find out more about how we can help, please call us on 03333 449 571 or email enquiries@optimmusshield.co.uk.

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Optimus Shield is the result of heavily invested research and development to tackle the issues now facing the private sector due to changes to the IR35 legislation being rolled out in April 2021.

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