Status determination statement guide for IR35

Status determination statement guide for IR35
Status determination statement guide for IR35

posted 06 Dec 22

As part of our ‘Ask the Experts’ IR35 question and answer series, we spoke to Sue Ollerenshaw, Director at Efficient Employment Tax Solutions Limited. We asked her how end-hirers can go about making Status Determination Statements efficiently, following the IR35 reforms that came into effect in April 2021.

Search: How do you make Status Determination Statements efficiently following the changes to IR35?

Sue: First, you need to identify all the workers that may potentially be caught out by the off-payroll working rule. That will include both those engaged directly by an end hirer and through the agency one and, indeed, any further agencies down supply chain.

The second thing that you need to consider is information gathering. This is about understanding who you need to speak to in order to obtain the necessary information and to ensure that you are not looking just at contracts, but what happens on the ground on a day-to-day basis. The people you might need to consider involving include finance, HR, procurement, anybody that is working alongside that particular consultant, and the consultant themselves.

It is useful to involve the consultant because it can prevent problems further down the line in instances where the consultant might try to use the status disagreement process. If they have bought into the information and gathering exercise, they would need to provide evidence showing that the information they provided was incorrect.

The next process would be looking at whether it would be possible to put workers into groups. Although you are not allowed to make blanket decisions, if you have groups of workers doing the same task and they are all engaged under the same terms and conditions, you can put them into those groups.

It is important to take advice and pick the right tools. If you have high volumes of consultants, it is not going to be possible to deal with it on a one-to-one basis using open questions, which would be the preferred method of gathering information. It is also important that anybody involved in the process has the appropriate training and understands what happens on the ground on a day-to-day basis.

About Sue Ollerenshaw

With over 30 years experience, Sue Ollerenshaw is a Tax Specialist and the Director at Efficient Employment Tax Solutions Limited. Sue advises all types of clients on how to comply with PAYE, NIC, Employment Income Tax and Construction Industry Scheme (CIS) reporting obligations. Previously working as an Inland Revenue PAYE Auditor and then Head of Employer Tax Consultancy for a Group A accountancy firm, she specialises in employment status and the interaction of IR35.

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