On 6th April, the new IR35 rules came into force. I thought I’d explain what they are, how you could be affected and how Sky Blue Safety is here to help.

First of all, what is IR35? It’s the off-payroll working rules for clients, workers/contractors and their intermediaries. For anyone who provides services through their own limited company or another type of intermediary in a way that is very much like a direct employee relationship, IR35 ensures they pay broadly the same Income Tax and National Insurance contributions as employees.

Whereas previously the worker had the responsibility of determining what their employment status was, under the new IR35 changes introduced this month the responsibility will move to the client. This has been the case for all businesses and workers in the public sector since 2017, but it is now in force for the private sector too.

Health and Safety Contractors and Consultants.

Many businesses hire contractors or consultants to help manage their health and safety, but this could now become a grey area with regards to IR35. Where a business may often engage an H&S candidate on a 3 to 6 month basis, it may be that IR35 will apply.

At Sky Blue Safety we don’t provide contract workers. All candidates are provided on a one-off fee basis, and the client is then responsible for the candidate being on their payroll or invoicing them directly, ensuring you have the clarity you need.

The benefits of working with Sky Blue Safety is that we charge a one-off recruitment fee based on period of engagement. Other agencies may supply on a daily charge, which might now increase. Where candidates would have previously invoiced the agency, under the new regulations the agency will now need to deduct NI contributions from fees and ultimately the business recruiting may now pay more on a daily basis.

To find out more about how Sky Blue Safety can help you or for advice on IR35, please get in touch.