Mitigate
the impact
of IR35 changes

With Fresh Egg, it's possible to retain contractor relationships and stay on the right side of new tax laws and the change to IR35 in April 2020.

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Post-April 2020

It's safe to retain contractors outside of IR35 with Fresh Egg

What is IR35 and why does it matter?

IR35 is a piece of tax legislation designed to ensure HMRC collects the right amount of tax for contractors who are employees in all but name.

As of April 2020, companies will have a legal obligation to determine the employment status of any contractor who provides their services through an intermediary, such as a limited company.

If an individual is considered to be 'inside IR35', the employer will need to operate payroll for them and make employer’s National Insurance (NI) contributions on the fees paid for the services they provide.

IR35 will apply in cases where the contractor would be regarded as an employee if they were providing services directly to the client, without the use of an intermediary.

Companies who rely on contractors can expect the following consequences:

  • The burden will be on the business to assess the employment status of their contractors
  • If those contractors fall within the IR35 rules, it will cost the company more money in terms of administrative resource for payroll and employer NI contributions
  • It is likely to result in a talent drain, as many contractors do not wish to become permanent employees
Understand your liabilities with a IR35 determination check

How can we mitigate the impact of IR35?

Fresh Egg are not a recruitment company, we are a digital marketing agency that has been successfully working with clients through a Statement of Work for the past 20 years.

Where the statement of work route is utilised, Fresh Egg become the end-client and make any IR35 status determinations.

Our solution involves Fresh Egg managing the project, taking responsibility for your existing contractors and providing the required services using a combination of those contractors or Fresh Egg vetted contractors and our own experienced project managers.

Utilising the services of Fresh Egg removes the IR35 risk from your organisation. With our partners Acumen Business Law, we offer a bespoke solution to ensure you can retain the key talent within your company, or engage Fresh Egg vetted contractors and avoid the ongoing cost and burden of IR35.

Read how we helped Tropical Sky with a complex multi-site web build with a contracted specialist project team

Getting started

If you have not yet assessed your IR35 risk, then the first step is an IR35 role assessment, carried out by Acumen Business Law, in order to assess which contractors fall inside IR35.

We will put together a tailored solution for your company, and deal with the set-up and documentation required. Once this is in place, we offer the following:

  • A stellar level of service supported by a team of experts
  • The placement and management of specialist project terms
  • Support during the transition
  • Access to our whole range of digital marketing and recruitment services

See our answers to common questions we are asked about IR35 and the forthcoming changes post April 2020.

Read our tips on staying outside IR35 for contractors and companies post April 2020

What makes us different to recruitment companies?

We have 20 years of running projects for our clients, we find the right team and manage it for our clients

Many recruitment companies offer IR35 solutions, but our legal experts are not convinced that they will mitigate the impact of IR35.

The very fact that we are not just a recruitment company sets us apart. We don't simply place people in your business and leave you to it - we provide specialist teams complete with project management.

You'll be able to continue to deploy key talent, and you'll benefit from services provided by experienced experts with a proven track record.

Common questions about IR35

The simple answers is yes, it is possible. But in order to maintain contract staff your organisation will need to at the very least carry out a basic assessment to determine whether a team member is inside or outside of IR35. See https://www.gov.uk/guidance/check-employment-status-for-tax for more information.
Retaining the services, knowledge and experience of an existing contractor in this example is possible. To ensure you are within the IR35 guidelines, the nature of the working relationship between your organisation and the contractor needs to change. Our solution will involve us taking responsibility for your existing contractors and providing the service utilising a combination of those contractors and our experienced project managers on a per-project basis.
The first step will involve an IR35 Role Assessment, carried out by Acumen Business Law, to assess if the contract requirement falls within IR35. If the contract opportunity falls outside IR35, we can help you source a vetted contractor from our extensive networks. Alternatively, if the contract opportunity falls inside IR35 and your organisation wants to avoid IR35 tax implications, we can provide specialists and vetted contractors through a managed fixed-term project, providing both project oversight and project management expertise.
We can help by providing a bespoke solution for your requirements, utilising a combination of specialist vetted contractors, our digital experts and our experienced project managers.
Find out how we can help you with your IR35 challenges with our Specialist Project Teams

Tell us your IR35 challenges