Problem
HMRC's Messaging Delivery Group had a significant number of contractors that were declaring themselves outside of IR35. Due to the change in regulations HMRC would become liable for determining IR35 status. The Messaging Delivery Group were receiving out-of-date advice from their management/commercial team.
Action
Our Lead Consultant:
- Identified that the draft legislation had been amended making HMRC liable for the determination; rather than the intermediary as the Messaging Delivery Group management were being advised.
- Facilitated an IR35-compliant contractual requirement.
- Enabled an IR35-compliant contractual response.
- Established an IR35-compliant set of ways of working.
- Implemented/managed the IR35-compliant ways of working.
Outcome
The engagement was deemed IR35-compliant by HMRC's IR35-compliance auditors. The engagement model was adopted by HMRC as its template for all future IR35-compliant engagements and has now been rolled out across the organisation.
The initial engagement has now been running for a significant amount of time. It is scalable and produces measurable, achievable, auditable and transparent objectives that improve client/supplier productivity.