Over the next five years it is possible that half the working population of the country will be identified as self-employed, due to the rise of contractors.[1] Most people who are self-employed have chosen to be so voluntarily and many value the freedom it provides.
There is a growing trend amongst businesses to utilise these flexible workers as a way of attaining specialist skills for specific projects. The rise of new legislation such as IR35 means that contracting and other forms of short-term employment can be harder to navigate, with assistance being crucial to success.
Gibbs S3 is one of the most respected hybrid workforce solution companies in the UK, with their contractor care programme being an integral part of the support strategy, resulting in over one-third of contractors working with them for over five years. The longer a contractor stays with a business, the more valuable they become to the end customer due to the ever-developing in-depth knowledge of the business, so Gibbs S3 do all they can to assist contractors so that they get paid on time, record the correct expenses, and pay the right amount of tax.
Punam Tiwari, Senior Legal Counsel at Gibbs S3, comments: “The IR35 legislation has made things trickier for contractors, as failing to comply can result in a hefty tax bill. These professionals are experts in their field, carrying out complex projects, so may not have the time to ensure that they comply with IR35 and other new legislation that may be introduced. As short-term employee numbers continue to rise, it is crucial that they are assisted with their admin and compliance so that they can focus completely on their work.
“For businesses, it is important that they have a productive and satisfying relationship with a contractor, especially when it comes to retention or returning in the future. Expertise that is gained by a contractor during even a six month position adds value to their offering, so ensuring that they have a positive corporate memory for any future dealings is desirable. A big factor behind this for contractors is how smoothly the on-boarding process is, and whether they have any issues in relation to their take home pay. This is why businesses need to work with workforce solution experts that have the contractor care unit that is vital to a successful short-term engagement.”
As part of its contractor care programme, Gibbs S3 is hosting a series of events to demystify the ever complex landscape of IR35, which began in Cheshire, to answer any specific questions that their existing contractors may have in relation to IR35. The event was a huge success, with it actually being so oversubscribed that people were forced to stand at the back and sit on window ledges.
Punam continues: “IR35 has caused a lot of confusion, especially in relation to how it effects expenses, so helping to empower our contractors so that they can primarily focus on providing their expertise to the end-client has been beneficial. Workforce solutions companies need to offer an all-round service to both contractors and clients, ensuring not just IR35 compliance, but also develop a deeper understanding of it. Events such as this give contractors the opportunity to field a number of really important questions, which get down to the detail and are applicable to specific situations.
“The lasting business value of contractor care is that the professionals enjoy the smooth process from the agency and the end client, who value a stable contractor base and the benefits that it brings.”
Punam Tiwari and Gibbs S3 will be hosting future events to discuss the impact of IR35.