What is IR35?
Also known as the ‘Intermediaries Legislation’, HMRC defines IR35 as off-payroll working. IR35 is shorthand for the UK tax legislation that is designed to identify contractors and businesses which are avoiding paying the appropriate tax by working as ‘disguised’ employees, or are engaging workers on a self-employed basis to ‘disguise’ their true employment status.
IR35 Delayed to April 2021
Due to the Covid-19 outbreak the government made the decision to delay the implementation of the IR35 off-payroll changes until April 2021. What is now accepted is that the government’s previous promise of a “soft landing” in April 2020 is unlikely to apply in April 2021 given companies have an extra 12 months to prepare. They will therefore need robust systems and processes up and running well in advance of April 2021.
JCS Digital & IR35
With JCS Digital you can retain and attract the best of the UK’s contractor workforce without any risks from IR35.
No IR35 liability
Your engagement with JCS Digital will be a ‘fully contracted-out service’ (as defined by HMRC), removing all your IR35 liabilities as we become both the ‘fee payer’ and ‘hirer’.
Not only are you indemnified by JCS Digital being both the ‘hirer’ and ‘fee payer’, we provide further peace of mind by ensuring all our individual contractor engagements are independently assessed to be outside IR35. Furthermore, each outside IR35 assessment is insured by Kingsbridge Contractor Insurance (underwritten by Zurich), which protects all parties in the supply chain – including the customer, JCS Digital, the agency (if applicable) and the contractor.
Retain your best contract resources
JCS Digital will be able to offer your existing contractors outside IR35 contracts, ensuring they are happy to stay working on delivering your projects.
A proportion of our charges will only be payable following your acceptance of the deliverables stated in the SoW, meaning you will not pay us unless we deliver what you want.
Better contractor performance
JCS Digital will transform your high-level project requirements into detailed deliverables for each contractor and link payment milestones to each deliverable. This means your contractors will be incentivised to deliver the outcomes you want, not just getting their timesheet authorised.
We manage all communications and contract management with existing contract workers and incumbent recruitment agencies to ensure minimal disruption to your projects.
By engaging with JCS Digital, you now have a platform for attracting the best of the UK contract market outside IR35 going forwards.