Trust the experts

For recruitment agencies and end client hirers IR35 throws up many challenges. However, when approached in the right way these challenges can provide some great opportunities to build stronger relationships and a more loyal workforce. With a dedicated legal team and 15 years of recruitment experience, partner with People Group to see how your business could benefit.

Status determination support

For help with status determinations and IR35 assessments we recommend engaging with a specialist. IR35 shield offer a range of services for businesses and PSC contractors. They have a wealth of experience with IR35 tribunals and investigations and are ideally placed to help.

Key terms

PSC –   Personal Service Company (AKA: Ltd Company)

IR35 – Tax legislation (AKA: ‘Off payroll’; & ‘Intermediaries legislation’)

Status Determination – A document shared down the supply chain declaring a contractor’s deemed employment status following an IR35 assessment/test

Placing PSC contractors on payroll

When transitioning PSC contractors to alternative payroll methods, People Group can help. We’ve highlighted the options below and included some considerations:

1. Engage via 3rd party Umbrella Company

  • Resistance from PSC contractors

  • Higher rates of pay

  • VAT on all payments to umbrella companies (reduced cash flow)

  • Need to vet/monitor and understand umbrella company compliance

  • Maintain outsourced engagement

  • Industry recognised model

2. Partner with a Professional Employment Organisation (PEO)

  • No Employer deductions (margin, NICs, etc.) from Candidate payments

  • Free to the contractor

  • VAT efficiencies on invoice

  • PEO is the employer of record and takes the employment responsibilities

  • No time spent explaining umbrella payslips

  • Enhances your brand experience

3. Pay them through your own payroll

  • May need to take on additional HR/payroll staff to administer

  • Potential resistance from PSC contractors

  • Rate increase requests

  • Additional employment responsibilities, liabilities & costs (Statutory etc.)

  • Total control over workforce

  • No time spent explaining third party Umbrella payslips

ARRANGE AN IR35 CALL

“People Group are such a ‘guiding light’ for our temps and ourselves during this time. The transparency, clarity and regularity in updating us and our temps, has been exemplary.”

Kirsty, Director, Tara Professional Recruitment

IR35 Opportunities

If you can get on top of IR35 and make sure that your workforce understand the implications you can actually turn this to your advantage. Selecting the right next move in terms of payroll can not only soften the blow for PSC contractors but it can help you cement stronger relationships with clients too.

  • Bring your clients closer

  • Building stronger supplier partnerships

  • Demonstrate ability to add value

  • Differentiate from competitors

  • Deliver the best financial outcomes

  • Advise and eliminate end-client risk

  • Avoid common pitfalls

  • Learn from IR35 in the public sector

  • Improve contractor continuity

  • Gain market share

Why People Group?

Our focus on the UK labour market for payroll and compliance is comprehensive. Combined with our practical experience of navigating off-payroll in the public sector makes us the go-to specialists for recruitment agencies with private sector clients. We’ve processed millions of payslips, cleared thousands of workers and above all helped our agency partners to grow.

See also: Is your business ready for the new IR35 rule? & Switching PSC contractors to payroll

ARRANGE AN IR35 CALL