Hays' joint-IR35 solution is an 'industry first'

With confusion and fears over IR35 liability ongoing, Qdos Contractor and Hays are rolling out what they call an ‘industry-first’ solution to allay anxieties over accountability due to recent legislative change.

With public sector recruiters still unsure who is liable for the tax – the public-sector body, the hired contractor, the umbrella firm or the recruitment agency themselves – this news will surely boost those that hire for non-private bodies.

Seb Maley, CEO at Qdos Contractor, explained that the Hays and Qdos tool, unlike HMRC’s ESS tool which initially caused large-scale confusion, will provide recruiters the reassurance they need.

He said: “Our unique IR35 solution involves all parties in the contractual chain so accurate, compliant and fair decisions regarding contractors’ tax statuses are reached.

“This means the public-sector body has the reassurance that they are meeting their legal requirements, whilst allowing recruiters to continue to place contractors in the public sector compliantly, on a large scale, with the backing of insurance.”

However, Maley noted that if IR35 changes are rolled out to the private sector, there could be further large-scale confusion if the changes were not made with an understanding of who they would affect.

He added: “The Government must listen to the concerns of the recruitment industry, and respond. The growing concerns surrounding potential private sector IR35 reform gives the Government an opportunity to quash rumours and clear up the uncertainty. While there has been no official signal that private sector reform is incoming, if it were to happen, changes cannot be rushed and the industry itself must be given a fair amount of time to prepare.”

“In the meantime, agencies placing public sector contractors can do so safely and compliantly. Unlike HMRC’s ESS Tool, we make expert and individual IR35 assessments based on detailed advice from each party; the contractor, the agency and the public-sector body.”

HMRC claim that £400million in lost tax was attributed to the IR35 law as it stood before April’s changes. Though unconfirmed, it is widely touted that IR35 changes will be rolled out to the private sector next year.

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