The impact of IR35 and Off-Payroll Worker Legislation on the recruitment of contingent Project Management practitioners .

With the current, updated IR35 and Off-Payroll rules in place, it is imperative that all organisations update their understanding of how the IR35 rules impact their recruitment process and use of contingent labour.

HMRC’s latest changes now cross both Public and Private sectors and require organisations to rethink their recruitment process in terms of Off-Payroll and On-Payroll. Traditional contracting is under the cosh and things may never be the same again! Gone are the days of contractors working alongside permanent employees for multiple years whilst taking their money through a PSC.

Status determination and CEST (Check Employment Status for Tax) are the new buzz words. Many traditional PSC contractors have found themselves working through Umbrella companies under PAYE and have either suffered a loss of income or passed on the cost to the hiring organisation!

Hiring organisations can no longer see IR35 as someone else’s problem, the worm has turned and ignorance in this area could ultimately leave them exposed to significant financial liability.

 

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