With fewer than four months to go until the Off-Payroll rules are introduced to the private sector, more than half of procuring businesses are yet to implement the relevant changes to their procurement models, and as such are placing themselves at risk. This according to a survey of more than 3,000 contractors, which found that 52% of those currently in work are yet to have their IR35 status assessed by the procuring business.
This is undoubtedly going to be a challenging first quarter for all businesses, as projects and programmes that were stopped dead in their tracks due to pandemic situation begin resurrection. Therefore, it is absolutely critical that any business looking externally to bring in talent under an off-payroll contract basis, does so with the relevant protocols in place.
Off-Payroll compliance is key to delivering complex Programmes
Businesses that are willing to assess their procurement model and look to engage with established Digital Transformation Consultancies such as True North Digital- thus abiding by their compliance obligations, along with enabling the sourcing of highly skilled talent- will be in a stronger position to deliver on their 2021 strategic business change initiatives.
Meanwhile, feedback from all respondents indicates that Businesses that are unwilling to engage contractors on an ‘outside IR35’ basis can expect to have to pay a premium for the key skills they require:
- 72% of contractors say they will quote separate rates depending on IR35 status
- 69% of contractors say they will increase their rates for ‘inside IR35’ contracts
- 16% have already successfully negotiated a higher rate
In the start to a financial year that is already fraught with commercial challenges, why would you look to potentially increase your costs simply because your existing model is contractor led? Surely it is more commercially advantageous to collaborate with an organisation that offers a transparent pricing model, with the addition of having absolute confidence that the contract is IR35 compliant. Quite simply this is what we are offering via True North Digital.
If this sounds like the situation you are likely to be faced with, then why not get in touch via our contact form at truenorth-digital.co.uk or by direct message to either myself or @liamrafferty