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We support clients with trusted advice to help navigate changes in the contracting sector.
CRS Solicitors are experts in employment status within the recruitment and contractor industry. Introduced in 2000, IR35 is legislation designed to ensure self-employed contractors operating through a limited company pay the correct income tax and national insurance. How status is determined in the Public Sector changed in April 2017, and similar changes will take effect in April 2020 in the Private Sector. Clients will be required to make decisions on status. It is therefore vital you engage with CRS Solicitors to support you to comply with new legislative changes.
Review of contractors
CRS Solicitors offer bespoke solutions to help review the current position and put in place status assessment tools to gain a clear picture of your contractors’ employment status on each assignment. We can offer training to help educate your teams, equipping you with the knowledge and understanding to make informed, compliant decisions when engaging with contractors.
CRS Solicitors offer expertise in reviewing contracts and developing compliant processes. Our experience advising and working with key industry partners enable us to offer informed, practical advice. Amid forthcoming changes in IR35, understanding your business and your areas of risk and exposure is key to careful planning.
We can arrange on-site visits to understand the nature of your business and tailor support suitable for the size and sector of your business. No two businesses are the same, and we take time to assess the needs of your business before discussing solutions best for you.
We help you to navigate through the changes, communicate & advise of liabilities
With regular industry updates, expert advice, and experience in understanding and applying legislation, CRS Solicitors are best placed to support clients and hirers comply with legislation in a changing contracting market.
Having experienced similar IR35 changes coming into effect in the public sector in April 2017, CRS Solicitors has seen first-hand the costly implications of late planning, poor communication and rushed decisions. Burying your head in the sand is not an option!
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Frequently asked questions
Does that mean the days are numbered for contracting?
Certainly not. The changes in legislation are about enabling genuinely self-employed contractors to continue to operate as self-employed after the Private Sector rule changes. Supported by the correct advice and compliant application of legislation, some contractors’ working practices and contracts can be amended to ensure that they stay outside of IR35. It is likely that most contractors who are very clearly caught by IR35 will wish to continue to provide their services in a flexible way and hirers will have to engage with them via a PAYE-compliant solution, such as through an umbrella provider. CRS Solicitors can help you understand your contracting workforce, assess status, and propose solutions that work for you and your contractors.
What’s meant by ‘Small Business Exception’?
Changes to IR35 legislation will not apply to “small” hirers in the Private Sector. How a ‘small’ business is defined is expected to follow criteria set out in the Companies Act 2006, based on balance sheet and turnover thresholds, and fewer than 50 employees. As with current legislation, contractors who provide services to small hirers will required to assess their own status for each assignment.
Under the new rules, what’s my obligation as a Private Sector end-client?
The employment status (for tax) of contractors operating through their own Limited Company will have to be determined by the end client within the Private Sector. This is already the case in the Public Sector and is being extended to the Private Sector from April 2020. Once determined, the employment status of contractors will need to be communicated to the ‘fee payer’ (normally the recruitment business) and to the contractor. It’s then the obligation of the fee payer to ensure that, where the assignment is determined inside IR35, correct tax and NI deductions are made.