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What Do the Changes to IR35 Mean for Your Recruitment Agency?

Kelly Lee
Digital Content Specialist


As a part of the September 2022 mini-budget, the federal government has introduced that it is going to be repealing IR35. This successfully implies that contractors will as soon as once more be chargeable for figuring out their very own standing, efficient from April 2023.

Let’s take a look at what the modifications to IR35 imply in your recruitment company.

What’s IR35?

IR35 was designed to fight tax avoidance by contractors and freelance professionals. Launched to the general public sector again in 2017 and the non-public sector in 2021, the IR35 reforms meant that both the hiring organisation or recruitment company was chargeable for figuring out the standing of a contractor or freelancer.

This meant that below the quickly to be altering regulation, the fee-paying get together (both the hiring firm or recruitment company) was chargeable for figuring out and managing the tax and nationwide insurance coverage standing of the service supplier – i.e., the contractor.

The federal government will repeal these reforms.

What do the modifications to IR35 imply for contract recruitment?

On the entire, the modifications to IR35 are welcome information for the recruitment trade, significantly these specialising in contract recruitment.

The repeal removes a barrier surrounding time to placement and can successfully enable recruitment businesses to put extra contractors, nonetheless, it’s necessary to make sure contract candidates stay compliant and are effectively knowledgeable of their new tasks.

How can Firefish assist?

Firefish maximises your contract recruitment effectivity by permitting you to supply, place, lengthen and observe all of your contractors from one place.

Generate contracts, handle terminations and extensions, ship candidate communications surrounding the upcoming IR35 modifications and schedule follow-up duties inside your recruitment CRM to make sure all contract candidates have accomplished the required documentation.

Be taught extra about managing contract candidates on Firefish.

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