What is IR35? The off-payroll working rules of IR35 will apply to medium and large businesses in the private sector on 6 April 2021. IR35 will impact you where you directly engage individuals, via their Personal Service Company (“PCS”), and/or where other companies in your group or portfolio do. All medium and large businesses will be responsible for determining the IR35 status of the contractors they engage. If the contractor is found to be operating inside IR35, you, the engaging business, must make sure the correct tax and NIC are paid. 

How can we help? A&M Tax can assist clients with their IR35 responsibilities. Our team of very experienced professionals has expertise across tax, HR and finance roles, including in-house roles and status specialist roles within HMRC. Using this expertise and experience we developed the customisable Test Employment Status Tools “TEST” approach. With TEST, we can ensure that you achieve IR35 compliance in a fair, cost-effective and time-efficient way. TEST works with your engagers and your contractors so that, crucially, both have their say in the status outcome. 

TEST is scalable to your needs and can include a full end-to-end process: 

• Project plans across workstreams
• Project management support
• Evaluation of population from your vendor data
• Automated status outcomes (like HMRC’s CEST tool) with better data capture, smooth and effortless processes, and managed data requirements, plus direct-to-engager/contractor communications via a personalised mailbox
• Generated Status Determination Statements (SDS)
• Policy, process and procedure changes, including payment options 
• Contract and Terms & Conditions revisions to help bypass IR35 and/or strengthen agreements and status documentation 
• Communications, including appeals procedures

Why choose A&M?

• Customised internal communications: TEST will be adapted as an internal initiative with your branding and communication style. While it makes clear that you are using your tool of choice, TEST will be fully supported and run by us. 
• Adapts to in-house administration: When you are ready to take the administration in-house, TEST is easy to use and will not need any branding changes.
• No personal bias: Our tool will screen the survey responses with no personal bias against the people, the role, the company, etc. 
• Determines definitive results: TEST is automated so it produces reliable results consistently and unlike HMRC’s CEST tool, it does not arrive at a “too difficult to determine” outcome, meaning you and the contractor can move forward once the outcome is given
• We take care of the audit trail and SDS generation: Via the database created from using the status questionnaires, we capture the outcomes and meet your statutory obligations to issue an SDS to all necessary parties, including third-party agencies/fee payers that may be in your supply chain. If HMRC wishes to undertake an audit or review of your processes, these will be captured within the TEST approach. 
• Manages your risks: With automatic results and reliable delivery of service, TEST manages your risks and produces the documentation and data you need in one easily accessible place. 

A&M Contacts:

Louise Jenkins
Managing Director
+44 758 393 5454
louise.jenkins@alvarezandmarsal.com

David O'Malley
Senior Director
domalley@alvarezandmarsal.com