IR35: You’re in safe hands with 345!

345 Technology offer you great software engineers and data scientists on our PAYE payroll so you won’t have any IR35 liability if you use us.

Background to the IR35 issue

From April this year the IR35 regulations will be introduced to the private sector.  This means that companies will be liable for payroll taxes if they are using temporary employees working through their own personal service companies (PSCs) that are identified as being off-payroll employees.

This is having a massive impact on the IT sector at the moment.  Most big companies are putting a blanket ban on contractors – whether they are inside IR35 or not – because they don’t want to take the risk of future action from HMRC.  As a result, the vibrant ecosystem of tech skills is undergoing its biggest shake-up in memory.

One response from big companies has been to point all their contractors at umbrella companies, offloading their PAYE headache and ensuring they are compliant.  This might be attractive for companies purchasing contractor services but it’s becoming increasingly clear it isn’t popular with the contractors. 

Companies are now at risk of losing a significant proportion of their skilled workforce.

345's response to IR35

There is another answer:  specialist consultancies.  If you hire in skilled people from a consultancy, where those people are employed by the consultancy and on the payroll, you will not be liable for any penalties under IR35.

For contractors wondering where to go, they are now far better off finding a consultancy like 345 to work for.  We provide interesting and varied work, training opportunities, full benefits and a support network of colleagues.  This is the future for many of the contractors out there, and it’s the solution for clients wanting access to a flexible pool of skilled people.

345 as a company is committed to building a strong core of highly-skilled permanently employed people.  We’re building for the future, working as hard as we can to be an employer of choice for the very best techs.  

What you should do next

If you are worried about losing your contractor team and want to discuss how you can keep your projects on track through Spring 2020, please arrange a confidential chat with us to see if we can help guide you forwards.

Similarly, if you’re a contractor stuck in the middle of this mess and you’re involved in 345’s core disciplines of Data Engineering, Software Engineering and Data Science, drop us a line so we can see if we’re a good fit for each other.

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