From April 2021 there are a limited number of truly legitimate options for managing and paying your workers who are ‘inside IR35’. Yes, you could simply bring them in-house. But this assumes that the contractor would be willing to make this move – and adds to your liabilities. Umbrella companies are still a viable option for some contractors, but are possibly less rewarding and straightforward than a PEO.
The advantage of PEO is its cost-effectiveness; it allows you to maintain your headcount, while the contactor (worker) can take home a similar gross income. At the same time, contractors can enjoy all the benefits of being an employee while your employer liabilities (and insurances) remain unaffected.
There is no set formula for which model – PEO or umbrella – is the best fit for your business. But with our PEO enjoying the seal of approval from HMRC and Professional Passport, you can rest assured that you do have options.
To find out more about IR35 and how People Group can help your business manage the new rule, click here or call 0345 034 1530.