A leading provider of workplace and recruitment solutions, Gattaca PLC has teamed up with IR35 Pro to offer an ‘end-to-end’ IR35 solution to UK companies.
In April 2021 HMRC introduced IR35 reforms into the private sector, causing substantial challenges for companies and contractors. For companies to pay a self-employed contractor the equivalent net income ‘inside’ IR35 costs approximately 25% more than an ‘outside’ contractor. This level of additional cost is not sustainable, and causes companies to decrease their net rates of pay on offer, which in turn results in companies struggling to find the right quality of contractor.
IR35 Pro will help UK companies make IR35 their competitive advantage rather than a risk needed to be managed. A third of contractors are estimated to have left self-employment since the reforms according to research from The Association of Independent Professionals and the Self Employed. 80% of contractors working inside IR35 said their income had dropped by around 30% on average combined with limited rights of employment.
These challenges have caused a major skills shortage, companies have been unable to recruit highly skilled workers to work on vital projects. Gattaca is partnering with IR35 Pro to offer the UK’s first end-to-end entirely managed service for IR35, this will aid companies in attracting and recruiting the most talented contractors while also removing the risks.
Paul King, Gattaca Chief Operating Officer said: “Many companies don’t have the legal expertise to understand how to effectively manage the changes, often adopting a blanket approach of only hiring contractors ‘inside’ IR35.” This has instigated an exodus of contractors, heightening the skills crisis, King added.
Founded by Martyn Valentine, a legal expert, IR35 Pro safely manages large contractor volumes and drafts all the associated paperwork and provides a robust audit trail. It additionally satisfies HMRC’s requirement for ‘reasonable care’, further reducing risk for their clients. Gattaca will be able to offer their clients a fully managed service that removes their IR35 headache through their partnership.
Martyn Valentine, Chief Legal Officer of IR35 Pro commented: “Forward thinking companies like Gattaca who embrace IR35 will give themselves a huge competitive advantage as they will attract the very best talent on the market for their clients.” Valentine said it is an unnecessary risk for companies to try and self-manage IR35, and in their experience many contractors are incorrectly classified ‘inside IR35’. “By embracing IR35 proactively, they will be able to attract the very best talent to drive their growth and success,” said Valentine