Project Managers. You now need to be far more involved in Recruiting Contractors outside of IR35
Due to IR35 changes in April 2020, you will no longer be able to use Contractors as a resource to be used anywhere in your department if they want to be outside of IR35.
In the past you may have recruited a Contractor in a very similar way to recruiting permanent staff. A couple of interviews then your preferred candidate starts on Monday.
The Contractor starts work on whatever you needed them for. But as time goes on, they get pulled into other things such as database performance problems, resolving production issues. Configuring build environments and attending company meetings.
That way of working will no longer be possible for Contractors that want to be firmly outside if IR35.
So, what do you do now?
If you want to use the services of one of these Contractors, you will need to specify exactly what they are required to do. The contract needs to be for a very specific piece of work. You won't be able to say to them 'can you look at this unrelated problem'.
What does this mean for you? You have got to specify exactly what you want such as the following three brief examples.
Add ten new pages to an existing Angular 7 internal website. This is in relation to administering various pension funds. We have manual test scripts that we will supply at the start of the contract.
You will have access to a RESTful API which has all the required access points. You will also have read only access to the relevant development database. You will have access to detailed user stories that have been written for each page/
Communicate with end users to create a high-level requirement documents for a Waterfall based project.
Create automated tests scripts for an internal website which as around 100 pages and 3 different use roles. Test data will need to be created in the SQL 2016 Database
You will need to go into far more depth about the piece of work that needs to be done. You will also need to have meetings (not interviews) with the supplier It’s different to what you have previously been used to. But it will be more efficient and more cost effective. You just need to spend that extra time creating a detailed specification, rather than saying that you want someone with a certain set of skills.
Legal note: Doing the above does not mean that the contract is automatically outside IR35. Also, I have no legal capacity, it is vital that you check things with your legal team and IR35 insurance provider.
Being specific about the piece of work that you want a Contractor to complete is only one part of the IR35 puzzle. You’ll need ensure that you have no ‘Mutuality of Obligation” with the Contractor. You have close to zero control over the Contractor and the Contractor may use a Substitute if they want. Again, your legal and procurement departments will be able to advise you on these points. (Note. Using the services of an external contractor/service provider is probably no longer in the realm of the HR department that you have previously used.)
If you would like to contact contractors/service providers who want to remain outside of IR35 then register at the following link and add your advert.
Here’s an example of how you add details of your project-based requirements
Add the header details of the project.
Add the general project type. This shows the main skills that the Service Provider will need to have.
Describe the project.
That’s all you need to do. We will then match you with our registered Services Providers who will then provide you with quotes for completing the project.
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