Name: IR35 ADVICE TO RECRUITERS - CHANGES TO THE SUPPLY CHAIN
Uploaded: 2020-03-16T01:15:07.000Z
Duration: 2 min 38 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Future continuous

the advice I would give to a recruitment company to help start prepare for the changes and also protect that risk that they're going to be taking on.

Is education going out talking to industry experts, going out talking to their contractor base, working on documents that kind of can't be enough education?

Then they can start to speak to the I 35 industry experts.

They can also start to look at the way to manage that risks by looking at different types of solutions, such as insurance, on getting very secure processes in place.

That where the risk lies for the recruiter is the fact that they're usually the fee payer in the supply chain, that they now hold the responsibility off, making the tax deductions if they are deemed inside about 35.

Therefore, if they're deemed outside of I R 35 it means that they hold the tax liability.

So if HMRC disagree with that outside decisions, they come after the fee payer.

So although the client is responsible for making the determination, it's the recruiter as the fee pay are that you're responsible for that tax element.

As soon as the changes came in in 2017 everyone suddenly panicked.

We saw a massive shift to umbrella cos we saw a huge increase in rates on dhe contractors moving from public sector into private sector so they didn't have to deal with it.

Now we don't have that option with it come into the private sector.

So the more education we can do, the more education to clients, more education to contractors than the less likely that knee jerk reaction is going to pay.

The recruiters that are doing more to prepare doing more to educate are definitely gonna be the recruiters in the chain that have that kind of commercial benefit, as opposed to the ones that aren't doing anything they can go into their clients on explain.

Look, if you have any direct contractors, do you understand that the only you're responsible for making that status determination you're also responsible for that tax tax liability?

If you slaughter recruitment company in the chain, who will become the fee payer?

They're taking away a lot of that tax liability.

This isn't the end of contracting as we know it.