Come April 2020, the responsibility to determine whether a contractor is within IR35 or not will move from the contractor to the organisation employing them. The impacts of this are not yet known but when this was announced in the 2018 Budget, it caused waves in the IT contractor industry.
IR35 is the legislation which got three BBC presenters into trouble — they even had to pay tens of thousands in back taxes — for falling foul of IR35. Search the internet and you'll find even more cases, and you'll start understanding why many are feeling uncomfortable.
What is IR35?
IR35, or the Intermediaries Legislation as it is known by its more formal name, was first announced in 2000. Its aim is to remove any of the tax advantages individuals have when operating via a limited company. These rules were meant to impact mostly "disguised employees" but through the years many governments noticed individuals were still working outside the rules. So in 2017 new 'off-payroll' rules were implemented and all those working with the public sector had to be IR35 compliant in line with the new legislation.
These changes have already impacted the industry and for the first time in five years, there has been a decrease in IT contractors in the UK.
After all, many IT specialists have worked legitimately without having to worry about IR35 for years. Now, these new rules will be applied to the private sector come April 2020 and both contractors and clients have been urged to get themselves up to date and become IR35 compliant so they are not liable to any compliance issues or tax fines.
What are the advantages of Cinq Amis being IR35 compliant?
No need to worry about your IT contractor's compliance
Advantages? Yes, that's right. As disruptive as some clients may see things, we have a silver lining — and that's not having to worry about the IR35 compliance status of your contractor. Many companies are having trouble determining whether their contractors fall out or in of IR35 and a wrong move might see a serious fine imposed. Our clients know they are working with a company who are both PAYE and IR35 compliant so you can focus on what's really important: your business.
Provide a substitute worker
While you can count on us for accurate testing on complex projects, some things are still out of our control: illness, time-off, etc. Part of being IR35 compliant means a contractor needs to provide a replacement worker in such cases. We are always in communication with our team members and, together with your project or account manager, we can make sure a replacement is available if needed. Our clients know that when working with us they haven't just hired one person but the expertise of a full team.
Niche technical skills at short notice
Over the years we've seen many projects fail because of lack of experience or insight. When we started Cinq Amis, our mentor program was an invaluable part of our work from day one. This means we have people with the right skills for the right project, whether you are planning a long-term project or you need immediate expertise.
A personal touch
Apart from their rigidity, big software companies tend to forget that at the end of the day we are all human. A personal touch is important in our business. Software testing is a very technical affair that impacts your operations so we ensure to keep a channel of open communication. We are that happy medium between a big company and the lone contractor.
Flexibility
Culture is important, we get that! We are not a large multinational who has a set way of doing things. We adapt to your needs. Big testing companies may come with their baggage which when unpacked may feel sluggish on your processes. Our services will not try to mould you into your competitors, because what's the point of that? In this world where everyone is striving for uniqueness, we let you be who you are.
With Cinq Amis you can rest assured that you are hiring an IR35 compliant firm with the added benefit of keeping the relationship personal. Head over to our services to learn more about how Cinq Amis can be the perfect fit to all your testing needs.