IR35 changes will be coming into effect from April 2021 following a long period of industry push back. This means that medium and large businesses will be responsible for setting the tax status of each contractor they employ. Effectively meaning ‘off payroll’ workers should be treated as full-time employees by businesses and add to their monthly PAYE obligations.
What does this really mean for businesses?
The main point to be aware of is knowing how to treat contactors you may work with; this includes determining the IR35 status of contractors (existing and newly engaged) with ‘reasonable care’ and issue ‘Statement Determination Statements’. For further information on how to determine the status of your current workforce please click the following link- IR35 – For Businesses
However, determining the status of your compliance to the new IR35 rule is only the half of it, ensuring the subsequent and skilled resourcing of your business is of great concern to many, due to the shrinking IT talent pool. In this blog we look at how to bridge the resource gaps to ensure a ‘business as usual’ operation within your organisation.
In a recent study conducted by Robert Half, 97% of Technology leaders feel confident in their growth prospects, however, see a gap in maintaining their IT systems security. It is no surprise when asked what skills were needed by their companies, tech leaders highlighted the following areas of concern:
- Cybersecurity
- Cloud Security
- Cloud Computing
- Cloud Architecture
Further research also shows 55% of survey respondents on LinkedIn actually report that the tech talent gap is widening, making it challenging to find the right people for your business.
Service Reliance vs Contractors
To bridge the resourcing gap and to remain competitive, many companies adopted an approach of hiring ‘one-man bands’ operating in Special Purpose Vehicles (SPV). These contractors ended up forging much longer-term assignments, sometimes out living the permanent members of staff and becoming a part of the furniture! Moving forward, this practice will be seen as an IR35 fail and if the correct tax status is not applied by the employer this could subsequently result in a loss of contractors, leaving behind a knowledge and skills gap notwithstanding an additional operational risk to your business.
The alternative as we approach the implementation date of IR35, is to lean towards a ‘Technology & Professional services’ company like Zuri Technologies, who can feed resources into your business as and when you require without comprising quality, assurance and skillset.
Our service ensures IR35 compliance, as you buy into a service rather than an individual operating from an SPV, therefore, you have less reliance on said individual and more on the service, which offers depth and breadth of coverage for your business.
The Bottom line
In summary, you get the best of both worlds, a pool of skilled resources when you need them, without being concerned about breaching IR35 rules and subsequently suffering the downstream consequences!
With many recent business uncertainties on the horizon, whether from IR35, Brexit or internal skill shortages, it is important to shore up and future proof your businesses resourcing requirements. Why not talk to Zuri Technologies today, as we can provide a pool of dedicated resources able to meet your End User Support, Networking, Security, Infrastructure and DevOps in a flexible, scalable and cost-effective manner.
