Private UK Companies Will Not Be Exempt from IR35

The winding journey of the upcoming IR35 in the UK continues. The legislation, due to go into effect in April 2020, shifts the responsibility for handling the tax and insurance payments of workers companies engaged through a third party. In the past, that third-party contractor was responsible for ensuring a worker’s proper classification, with tax and national insurance payments covered according to the worker’s status as either an employee or a flexible worker.

For employers, IR35 places a burden of classifying workers correctly, with a risk of millions of pounds in fines at stake. Along the way to implementation, the law has raised many questions. And on July 11, 2019, the government issued draft legislation that would finalize many details about IR35. Notably, the rules will apply to medium and large private companies that employ workers through contracting arrangements.

Takeaway: For employers, time is of the essence as they seek to gain a full understanding of their contractor workforce. AGS is helping clients address this challenge through a focused solution that leverages proprietary, AI-enabled DocuSift technology to automate the analysis of contractor statements of work against 250 worker classification test points. This rapid analysis, combined with expert assessment and a framework for action, provides companies with direction to support IR35 planning in a fraction of the time required for manual assessment.

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APAC

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