IR35 solutions businesses are using to become compliant

* Please note this article and video were created before the date of implementation was pushed back to 6 April 2021*

Wondering what solutions other businesses are deploying in order to get ready for the upcoming IR35 private sector reforms in April 2021? We break down the top three and what they will mean for you. Read on and watch our Video Blog to find out more.  


MSP (Managed Service Programme) or payroll solutions

Nothing new in the recruitment world, MSP & payroll solutions have been around for years. In fact, it is something that many companies already use to manage their ‘off-payroll’ workers.

An MSP is when a company outsources all or part of the management of their off-payroll resource. This includes the compliant supply chain management, sourcing, on-boarding, payment & billing, reporting and off-boarding of your flexible workforce.

Payroll services are similar but don’t typically include supply chain performance management or contractor sourcing.

Many MSP and payroll providers are now offering to manage IR35 compliance as part of their service. Naturally, they have a good understanding of the process but still need to work with you to undertake due diligence – there are no quick fixes to IR35!

There are also many benefits of a MSP and payroll solutions beyond IR35 alone, but the reforms could be the perfect opportunity to get your house in order and manage off-payroll workers in a more effective way.

Gattaca has been offering MSP & payroll solutions for over 18 years, so we have a wealth of experience. Find out more about our Flexible Workforce Solutions or get in touch with us to further explore the benefits of this solution.

Statement of Work

The second in our list of popular IR35 solutions is ‘Statement of Work’ (SOW).

One of the key determining factors in IR35 is the engagement model of the worker and whether or not they are delivering a genuine business-to-business (B2B) service.

Therefore, if your company’s assignments within scope of IR35 can easily be defined as a deliverable, outcome-based piece of work, it is possible to outsource it under a statement of work contract, rather than an individual limited company worker engagement.

Due to its simplicity and ability to deal with targeted groups of high-priority assignments, this model was actually one of the most commonly deployed during the public sector reforms in 2017.

Our in-house engineering & technology services provider, Gattaca Projects, has been delivering this solution for a number of years. With this model, the current limited company contractors working with you will provide their services to Gattaca Projects as a third party services provider and we will deliver services to you under a statement of work arrangement.

This service includes full project management against deliverables and milestones, which means you’re no longer paying for a contractor’s time, but for a specific outcome.

Again, there are plenty of benefits to operating in this way outside of IR35 compliance, so it could be a great opportunity to explore an alternative way of ‘getting things done’ in your business.

Find out more about our SOW offering or get in touch to talk to us about how you could deploy this solution to protect your project-critical contractors.

End-to-end IR35 change management solution

Finally, the most popular of the three, many clients are choosing to deploy an end-to-end change management solution as they recognise that they neither have the time nor desire to manage IR35 changes on their own.

Just getting ready for IR35 takes a lot of time and effort away from ongoing critical projects, but it is also possible turn IR35 into an opportunity for your business. You can use it to improve your processes, enhance your access to workforce data, and define your organisation as a destination of choice for limited company, off-payroll talent. Most importantly, it could enable you to get access to project-critical resource ahead of your competition.

Gattaca’s end-to-end IR35 Change Management & Readiness solution can take away the hassle of preparing your business for the private sector reforms. We work with legal & insurance partners to provide a comprehensive solution that includes dedicated project management against a defined timeline, communications planning and pre-agreed fixed costs.

Before spending lots of valuable time trying to figure out who will help you deal with this change internally, consider how much easier and less risky it would be to have an experienced partner manage this for you. Visit our IR35 Hub or get in touch to find out more about how this solution will help your business.


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