Digital accountancy agency Crunch has launched a new, free IR35 calculator tailored for contractors ahead of the April 2020 reforms. The new service allows contractors to assess the risk of their assignments being affected by the new IR35 ‘off-payroll’ rules, which are extended to the private sector on 6th April this year. It follows the launch of Crunch’s full end-to-end IR35 solution for recruiters and employers last month.
The new calculator takes five minutes to complete and asks 50 detailed questions to assess an assignment’s IR35 status and level of risk.
Once the free risk rating has been given, Crunch’s tool provides the option to purchase a report with detailed conclusions and recommendations for each question, as well as the opportunity for an in-depth contract review with an expert to help establish employment status. This report can be used as evidence a contractor has taken reasonable care to assess the IR35 status of an assignment if it is later questioned by HMRC. After 6th April, contractors can also use the report to discuss the IR35 status of an assignment as determined by an end-client.
Since going live just before Christmas, the calculator has been used by 1,600 individual contractors, with an average of 100 new risk assessments taking place each day.
Darren Fell, CEO and founder of Crunch, said:
“As we enter a new year, the year in which the April 2020 IR35 reforms come into place, we are seeing a sense of urgency from contractors. Online searches for IR35 are currently up over 100% month on month. With only three months to go, we’ve launched this free tool to help the UK’s millions of contractors ensure they are compliant. The UK’s self-employed are the backbone of our economy, and whilst this legislation is in place, we want to do all we can to provide them with the support and peace of mind that they are working within the Law.”