If your company relies on contingent labour in the UK for Interim Technology Management, Digital Transformation Strategy, or Technical Solution Delivery, understanding the latest developments with the IR35 offset policy is essential.
IR35, also known as the off-payroll working rules, aims for fair taxation by categorising contractors into inside IR35 (similar to an employee) and outside IR35 (operating as a sole business). Previously, businesses faced over taxation if they engaged contractors incorrectly outside IR35, with HMRC seeking PAYE and national insurance liability recovery without considering previous tax payments by the contractor.
The IR35 offset policy has been introduced as a solution to double taxation. It allows businesses to reclaim a percentage of tax paid if HMRC deem that contractors should be inside IR35, thus reducing tax burden and risks.
What is the significance of the new IR35 rules?
- Contractor risk slashed by 75% [though some debate its initial risk)
- Cost for inside IR35 engagements will now surpass the low risk of outside IR35 assignments
- Sourcing high calibre contractors for inside IR35 roles will become increasingly challenging and costly
- Firms that previously enforced blanket bans on outside IR35 contractors are now re-evaluating their policies to unlock talent opportunities
Businesses can expect a surge in outside IR35 assignments, especially for Interim Technology Management, Digital Transformation Strategy, or Technical Solution Delivery. Coupled with the increasing prevalence of remote work, effectively managing change implementation through virtual teams becomes crucial for all businesses.
Navigating these complexities can be daunting, especially amidst the multitude of Top Tech consulting firms spanning the UK. BML specialise in guiding companies through digital transformation by placing a strong emphasis on people whilst shaping the future of their business.
When embarking on a new Digital and Transformation Strategy with clients, priority is placed on establishing future outcomes over current goals. As our CEO, Ben Johnson, emphasises, it “needs to be a wholly benefit driven conversation rather than a technology driven conversation”.
We focus on future potential business models and identifying opportunities with new technologies that can be swiftly integrated into the market. For example, for traditional businesses such as builders merchants, we explore innovative approaches including augmented reality, virtual reality, and building information modelling to revolutionise operations. This kind of technology solution delivery project has a whole piece around cultural change that people often forget. We know that we have the technology to do all sorts of really clever things but we also appreciate the importance of bringing the workforce along on that journey.
By engaging employees in the transformation journey, we ensure that the benefits of technology adoption are maximised and sustainable. Our approach goes beyond technical implementation to encompass comprehensive change management strategies, facilitating seamless integration and adoption of new technologies within the organisational culture.
BML can play a pivotal role in leveraging the benefits of the new IR35 Offset Policy to optimise output from a contingent workforce.
Discover how we’ve made a difference for numerous clients, spanning from Salesforce Project Management to Agile Maturity Assessments by heading over to our Case Studies page, or book a call now.
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