If your business engages with limited company contractors then you will need to prepare for imminent changes in IR35 legislation to ensure minimal disruption to your company and its IT contractors.
New IR35 legilsation means that IR35 status determination will become the responsibility of the end client or hirer rather than the contractor. Tax liability will then sit with the “fee payer” who must deduct tax and national insurance contributions.
As an industry that is heavily reliant on contractors, businesses working in the technology sector are likely to be hugely affected by the upcoming legislation on several fronts.
Firstly, there’s the issue of cost. HMRC will generate £1.3 billion in revenue from the legislation changes. Meanwhile businesses will spend tens of thousands preparing for IR35 changes. Secondly, the Office For National Statistics recently reported that there has been a 2.4% drop in IT contractors. This has raised alarm bells within the technology sector regarding a talent shortage and subsequent project delays. Although these statistics cannot be directly attributed to IR35 changes, with large corporations implementing blanket approaches to IR35 changes and some even ending their use of limited company contractors, it is easy to see how IR35 changes could be causing a talent drain in the technology sector.
It is without a doubt that IR35 legislation changes are going to have a colossal impact on the technology sector, causing worry for businesses reliant on IT contractors and contractors alike, a topic that is discussed in our recent blog.
With this in mind, technology businesses must take preparatory steps in order to mitigate all risk and protect themselves from the expense and talent shortages that the industry is seeing. By doing so, companies ensure they can secure and retain the industry’s leading IT contractors by providing IR35 protection and security for the whole supply chain.
This is where Optimus Shield comes in….
Optimus Shield offers a service that:
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.