This information is relevant if you currently engage interim contractors via myfm or have done so in the past. We want to reassure you about the steps we are taking to make it easy for you to continue to do this when rules change in April on the assessment of IR35 status.
Also, feel free to share this information with others, particularly if you recommend myfm to colleagues and other organisations.
How will the IR35 rule changes affect you?
For every assignment, large and medium sized businesses will soon be responsible for making the assessment on whether a contractor is categorised as inside IR35 or outside IR35. In other words, the government requires businesses like yours which commission work to assess whether the employment status of each individual should be employed or self-employed. The rules determining status are not changing just who is responsible for making that assessment.
myfm is proposing to carry out the IR35 assessment on your behalf
In response to this, we will make this process easier for you, our clients, by completing the IR35 assessments for our associates on your behalf.
We are planning to do this using the online government assessment tools. The reports generated will form part of the Terms of Reference for the engagement. This will help you by reducing the admin you will need to complete before engaging interim contractors.
We are confident that the majority of interim placements, by their nature, will continue to remain outside IR35 – self-employed. We have already run through this process for several of our clients and associates to ensure compliance.
If during the course of the assessment process, we find an individual assignment is assessed as inside IR35, we will liaise with you on payroll arrangements.
Your flexibility will help
We have discovered that the assessment results are based on a culmination of different factors, rather than individual question responses. Before any interim appointment, we encourage you to think about:
- Being flexible on where and how the contractor works.
- Measuring success through outcomes, rather than a ‘role-based’ appointment.
- Allowing the contractor to provide their own laptop and equipment.
- Entering into a separate agreement for each new project.
- Requiring the contractor to put right any sub-standard work at their own cost.
- Allowing us to send an appropriately qualified substitute, when required.
To summarise, we will:
- Streamline the engagement process for you by carrying out the IR35 assessment on your behalf, using the information you provide.
- Reassess an assignment on a regular basis.
- Use the assessment report generated by the government tools as the Terms of Reference for the engagement.
- Always seek up-to-date information from you to complete IR35 assessments.
- In the event of a result which indicates an appointment should be inside IR35, we will liaise with you to find a solution on payroll.
myfm provides highly qualified and experienced interim managers and consultants to the FM industry, often at short notice. We are confident that the steps we are putting in place will enable you to continue to access this service with minimum changes, despite these new requirements on businesses.
While we are not experts in employment law or tax, from our research we believe the majority of assessments for the type of interim appointments which we make should be straightforward to assess using the government tools provided.