RED has developed a robust, effective and reliable IR35 assessment tool to make sure that all necessary arrangements are in place to ensure continuity of service and, more importantly, legislative compliance, before the new measures take effect on 6 April.

Under the new IR35 regime, coming into effect 6th April, organisations who receive services from PSCs have a legal responsibility to assess the tax status of these workers, prior to the commencement of each placement. 

Potential tax and financial penalties can be faced if organisations fail to assess contractors against specific criteria, to determine their IR35 status.

The good news is that RED can help with your IR35 assessment. 

RED's online assessment tool

As an SAP recruitment agency with UK clients, RED has developed an online, automated IR35 assessment tool for our clients that provides peace of mind through ease of use, reduced effort, managed risk and clarity of outcome.

RED’s IR35 online assessment tool:

• Automates the flow of information to meet our clients’ legal responsibilities under the legislation
• Provides an automatic assessment upon submission
• Automatically generates a Status Determination Statement (SDS)
• Reduces client workload as RED’s dedicated compliance team initiates the SDAs

The tool comprises four steps, namely:

1. RED’s Compliance function initiates an SDA for each placement

2.  SDAs are sent to hiring managers via email

3.  The questionnaire will focus on the working practices of the assignment to determine whether IR35 applies

4. The end user, RED and contractor receive a copy of the SDA result

Conclusion

If the authorities determine that a consultant is an employee for tax purposes, HMRC will request back-payment of the income tax and NICs owed, together with penalty charges.

If you would like a demonstration or to find out how to make use of RED’s tool right away, get in touch with your RED representative today or email info@redsapsolutions.com.