IR35 MANAGED SERVICES

From 1st April 2021 responsibility for setting IR35 status will be passed from contractors to medium & large organisations that engage these workers.

Liability will also be passed from the worker to the fee payer - often the recruitment agency (this is already the case in the Public Sector since 2017).

Recruiters and employment service providers could potentially face large tax bills for incorrect IR35 decisions made by their corporate clients.

The new rules apply to all medium & large public & private sector organisations that meet two or more of the following conditions:

o   Annual turnover of more than £10.2m

o   Balance sheet total of more than £5.1m (gross assets)

o   More than 50 employees in the organisation

Our model is proven to separate accountability and ownership from the client and supplier (Contractors), to provide an effective and well governed set of outcomes.

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Engagement Delivery model is used to ensure effective compliance, across all areas of IR35 & GDPR


Key factors include:

  • Substitution - where feasible (and practical) we ensure Contractors (Suppliers) can effectively substitute themselves (if needed and at their cost) by ensuring their progress is tracked, reported and measured along with rewarding them accordingly for success or failure

  • Direction, Supervision, Control - By providing the Contractor a service contract (SoW) we document, track and pay against the actual outcomes on a unit/deliverable rather than time. We ensure overall adherence to Programme direction but provide flexibility within their tasks to complete as they see fit

  • Financial Performance/Liability - inherently built into our SoW contracts, DG Solutions will take overall liability for the programme but ensure this flows down into supply chain (Contractors) to carry their respective levels of risk and liability, this goes hand in hand with the above 2 points

  • Mutuality (MoO) - due to our service contracts being definitive on an outcome and nothing more, this removes any mutuality of obligation to continue paying or providing work beyond the end date

DG Solutions will apportion a dedicated Engagement Delivery Manager to achieve the following: -

  • Ensure service governance across the Managed Service, tracking and reporting as needed on the elements under our accountability

  • Conduct formal/informal service reviews on a minimum monthly basis to CGI/GCC and supply channel

  • Track and uphold a RAID log to identify key issues and dependencies across the programme

  • Manage change process as needed for any amendments to the service we provide

  • Liaise with client on areas of contractual performance and adherence, seeking areas for improvement for more effective cost management and/or programme delivery

  • Partner and support our Programme Manager with any technical program needs, managing issues and affecting change as required

 

Do you have any questions and want to learn more?

Get in touch and we can help answer any queries you may have!