case study: establish IR35 programme management best practices to ensure compliance.
Leading cosmetics company creates a clear process and mitigation plan to ensure IR35 compliance on time and in the long term.
challenges & goals
With the IR35 regulations taking effect in April 2021, employers have to set the tax status of their contractors and ensure they are categorised correctly to avoid being fined.
Knowing they were payrolling a lot of workers which would put them at risk, this cosmetic company sought out support for assessing whether its contractors were in line with the new regulations. The company also wanted to establish a clear process and a mitigation plan for assessing and managing current and future engagements to ensure compliance with IR35 requirements at all times.
the solution
The company engaged Randstad Sourceright as its partner for IR35 programme management. The experienced project manager adopted a consultative approach and worked closely with the client’s legal, HR, procurement, finance and operational teams to guide them through the process of assessing their current contractors.
Acting as the project manager, Randstad Sourceright set up the project environment, managed the project plan, coordinated with key stakeholders and provided weekly progress reports to ensure that key milestones were met. The IR35 support services also provided templates for communications, processes and policies, drove change management and facilitated supplier relationship management. This helped to create and establish best practices and tools that the company will continue to use to manage the process on their own going forward, and in advance of the pending April 2021 deadline.
key results
- guided and supported the process of individual assessment and determinations for 200 contractors under IR35 regulations, reducing the company’s risk
- commencement of process to transition in-scope direct contractors to Randstad for payroll
- created IR35 process flows and tools to manage new and existing contractors, helping to ensure compliance before the April 2021 deadline
- developed and shared best practice approach to IR35 communications to hiring managers, contractors and suppliers to drive change management and set up long-term processes