In the Autumn 2018 budget, the government stated that the private sector would be covered by IR35 from April 2020.
This legislation places the responsibility of determining whether procurement interims, consultants or contractors fall inside or outside IR35 on the organisation.
If a freelancer, interim or consultant is considered inside IR35, the organisation will be responsible for paying the necessary taxes.
With April 2020 approaching, it has become essential that procurement takes stock of the interims, sole trading companies and consultants it uses and works with them to prepare for IR35.
Begin preparations right away
Procurement should start its preparation for IR35 at once to ensure that the organisation does not get penalised.
Thankfully, you will not have to alter the way that you utilise procurement interims.
You should just make sure that you have the right talent so that you enjoy value for money regardless of whether the interims are deemed inside or outside IR35.
Risk assessment is key
As a CPO, you should be aware of how IR35 will affect your future hiring strategy when you are looking for temporary talent.
Assessing and analysing risks will allow you to come to solutions that you can introduce when necessary.
Being prepared for different eventualities is key to ensuring that your organisation does not get adversely affected by IR35.
Introduce a long-term strategy
Once IR35 comes into effect, procurement will require a long-term strategy to utilise interims and contractors.
The right strategy will allow you to onboard temporary professionals for different projects without worries, and you will enjoy greater control and efficiency in the processes.
Study the contracts with contractors and interims
IR35 requires organisations to prove that procurement interims, consultants and contractors do not have an employment relationship with them.
To guarantee this, check the existing contracts to ensure that they clearly state this fact and your organisation will be able to implicitly prove that these temporary workers are outside the purview of IR35.