Overcome the challenges posed by the new IR35 legislation for HR Systems Services and Support
As of the 6th of April, the new IR35 legislation (also referred to as the ‘off-payroll working’ rules) came into effect. IR35, also known as "intermediaries’ legislation “, is a tax law issued by HMRC. It has been put into effect to prevent independent contractors or freelancer (‘workers’) from taking undue advantage of favourable taxation.
IR35 will only impact ‘Disguised Employees’ i.e. a contractor or freelancer that would normally be a full-time or part-time employee with an employment contract, but instead, they use a limited company, or another type of intermediary, to provide services. It is now up to the business engaging the services of a contractor to determine whether the individual falls within the scope of IR35, and must therefore be processed as an employee, paying tax and National Insurance contributions.
If you subcontract work to an individual, you’ll need to pay much closer attention to their employment status. If you incorrectly determine their status, and HMRC (or the courts) deem that their work was actually that of an employee, then it’s your responsibility as the ‘engager’ to settle the unpaid PAYE and National Insurance. Also, there may be late payment fines and other penalties for the incorrect submission of your company’s PAYE returns.
How we can assist in overcoming the challenges
Tugela People provide a range of HR System digitalisation solutions and support services, including system consultancy, implementation, project management, system integration and HR Automation. We also partner with established companies that share our passion for delivering service excellence, recognising that working alongside area specialists enhances our solution and service offerings. These include, but are not limited to, Sage People (HR System), Moorepay (Payroll), TalentLMS (Learning Management System) and Deputy (Time & Attendance).
All our consultants fall outside of the IR35, removing the challenge and concern of engaging our services. This also presents an opportunity for companies requiring the services Tugela People offers to engage with us rather than facing the potential pitfalls of IR35 in hiring an external consultant.
Additional benefits for post-implementation support
Our Managed Services division provides HRIS admin support to all companies using the Sage People HR system. Support can be in the form of a fixed contract term contract, having a designated resource or on an ad-hoc, flexible basis. All our Managed Services consultants are not an 'office-holder’, providing you with a support service, 'on tap', without the concerns of the new IR35 rules.
What next?
If you would like more information on our people-centric, cloud-based solutions and services, contact us on tel +44(0)1908 030360 or email: info@tugelapeople.com. Alternatively, complete the ‘Get in touch’ form and a member of our team will contact you directly.