Crunch is an award-winning, pay monthly online accountant.
Save money, and get your accounts done fast for as little as £25.50 per month.

Find out more
What do recruiters need to know about IR35? - Image of two recruiters with a contract

What do recruiters and agencies need to know about IR35?

tax

Table of contents

    On 6th April 2021, the rules around off-payroll working (IR35) underwent some important changes outlined in our IR35 in the private sector article. These changes have had a significant impact on recruiters, both at employment agencies or in-house. It’s highly recommended that you seek expert advice if these changes affect you.

    To help explain what all this means, we have a free, downloadable, business guide called ‘What do recruiters need to know about IR35?’.

    IR35 for Recruiters Guide banner

    What does ‘IR35’ mean?

    IR35 is the name given to the off-payroll working rules set by HMRC. The rules are also referred to as ‘disguised employment’ and affect any worker providing services via a Personal Service Company (PSC). The rules are designed to ensure that workers pay the correct amount of Income Tax and National Insurance Contributions based on their employment status.

    What is covered in the IR35 guide for recruiters?

    Our free PDF explores the following topics:

    • Who decides if a contract is inside or outside IR35?
    • Private sector rules from April 2021
    • Status Determination Statements (SDS)
    • Will end-clients simply stop engaging with PSCs?
    • What to do if there’s any disagreement about a Status Determination Statement (SDS)
    • Who is the fee-payer?
    • Risk to agencies of being liable for unpaid employment taxes
    • What should agencies be doing now?

    IR35 webinar for recruiters

    On 12th November 2019, we hosted a webinar all about IR35 and the government’s impending changes.

    The webinar was hosted by IR35 expert Crawford Temple from Professional Passport, who explained what the government’s changes mean for recruiters and the contractors and end-clients they work with. We discussed everything you need to do to prepare before implementation (which at the time was still scheduled for 6th April 2020, but was subsequently delayed by 12 months due to the COVID pandemic) and answered a series of questions from our audience.

    We also discussed our IR35 Navigator tool which helps recruiters, end-clients or contractors check the IR35 status of an assignment, and explained how this could help your agency win new clients.

    The webinar is available in its entirety below:

    Our “What is IR35?” hub is the place to head for all things IR35 – we have an independent IR35 Navigator tool to help contractors, recruiters and end-clients understand their IR35 risk, a jargon-free IR35 business guide aimed at contractors as well as articles explaining everything you need to know about IR35.

    Key Information Documents

    Unfortunately, IR35 isn’t the only new piece of legislative change that recruiters need to keep their eyes on. Since the 6th April 2020, agency workers have needed to be provided with a Key Information Document before they agree on terms with a business or agency.

    You can read all about Key Information Documents (or KIDs) in our Knowledge article, “What is a Key Information Document and why do agency workers need one?“.

    If you’ve had enough of juggling spreadsheets and never finding the right invoice, your business needs Crunch’s free accounting software, whether you are a freelancer, sole trader or limited company. We are the UK’s most cost-effective online accounting service, with an award-winning Customer Service team and Chartered Certified accountants.

    We have no hidden fees, no limitations, but a wide range of accounting software features that help you easily manage your business. If you need more information, you can talk to our expert online accountants, payroll experts and even VAT specialists.

    Is it time for your Self Assessment? The Crunch team can also complete and file that to HMRC for a one-off fee. We have a powerful online system and fully-trained accountants to relieve you of stressing about those numbers.

    Need more help?

    All of the above comments are for your information only. We always recommend speaking to an accountant for a more in-depth analysis of your circumstances.

    If you don't have an accountant or are looking to switch, give our friendly team a call on 01273 257165 or arrange a free consultation.

    Speak to an advisor

    Recommended reading