Off-payroll labour tools
Private sector businesses have to consider the off-payroll labour/IR35 rules whenever they engage a contractor on a contract which begins after or spans 5 April 2021. Failing to deal with contractors correctly can expose your business to unexpected PAYE and NIC costs, interest and penalties (higher penalties if you can’t demonstrate that you have taken reasonable care to get things right). Take a look at our IR35 guidance to find out more.
BDO offers two helpful tools to help you manage the impact on your business.
Off-payroll Risk Manager
How many contractors does your business use? Who engages them and on what terms?
Working from your purchase ledger entries, BDO’s Off-payroll Risk Manager can help you easily identify your contractors and pick out the high risk cases for individual review. The tool will then break your contractors down into groups including personal service companies, self-employed contractors and agency workers – allowing you to manage down the risk to your business without having to spend huge amounts of time reviewing individual purchase orders from your supplier population.
BDO’s Off-payroll Risk Manager builds a bespoke risk register that not only allows you to focus your resources where they are most needed but demonstrates to HMRC that you are actively managing the off-payroll issue in your business.
Start managing your risks now.
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Having identified your contractors, what do you do next?
BDO’s Off-Payroll Tracker will help you decide when an individual contract will fall within the new rules (requiring a status determination to be made) or whether it will fall under the agency rules. It will also help you record details of every contract and document any formal status determinations that are made as well as track the appeal process where a contractor disputes the decision.
Using BDO’s Off-Payroll Tracker will give you a clear audit trail (exportable to Excel) to prove to HMRC that you have taken reasonable care over your responsibilities as engager or end user for each worker. So, for an annual fixed fee, you can protect your business whether HMRC just investigates your employer compliance processes or as part of a wider SAO/CCO process review.
Start managing your risks by asking for a free demo.
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Watch our demo below