IS YOUR TECH READY FOR IR35?
You know, or at least I hope you know, that you’ll need to carry out an audit of your contractor workforce in preparation for the incoming IR35 legislation changes this April.
But another thing you should probably add to your list, is an evaluation of the technology and processes that underpin the way you bring contractors into your business. You should make technology your secret weapon when it comes to IR35.
Get everyone up to speed on classifications
IR35 compliance hinges on the correct classifications of your contract workers. And once you’ve gone to the trouble of determining the IR35 status of your current workforce and your live roles you need to make sure that every single person involved in the hiring process is aligned.
This is where technology can really help you. By building in IR35 status into tech, you can make sure that these determinations are always clear. Everyone from the hiring managers to the sourcing team to payroll will know if a contractor or a contract role is inside or outside IR35, centralising your data, and leaving less room for mistakes.
You’ve got an audit trail
Having all of your data in one place protects you. And that’s because if HMRC should come knocking at your door you’ll have records of exactly who made each IR35 status decision and who approved it based on the role requirements.
Essentially having a system and a process in place for IR35 is your best chance of staying compliant in the future. It’s all well and good doing a contractor audit of your current workforce, but if you don’t have a sustainable, long term solution you’ll just have to carry out the same exercise again year on year.
Let’s be honest, the most exciting thing about having all of your data in one place, isn’t really IR35 compliance. It means that you’ve got a whole bunch of accurate data that you can turn into actionable insights.
Insights such as:
- How many non-permanent workers does your organisation currently employ?
- How many aren’t on the payroll?
- Are these contractors consistently performing?
- What are the D&I statistics for your non-permanent workforce?
- Do inside or outside IR35 roles get more applications?
- What’s the exact cost of a bad hire?
These insights give you visibility over your contractor workforce, and visibility gives you control.
At Caraffi we believe that if it isn’t measured, it isn’t done. Talk to us today to see how we could help you sort IR35 and build you a dashboard for your contractors workforce including performance metrics.
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