Global IT, networking and cybersecurity solutions business brings controls and processes into IR35 compliance

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Industries

Networking Hardware
Networking Software

Number of Employees

77,500 Employees

Company Revenue

$2.19 Billion

Areas Served

United Kingdom

9.7 Million

Savings per year

£3.9 Million​

In growth

200

Ensure contractors were in the right tax structure

SITUATION

New legislation brings new challenges

A global IT, networking and cybersecurity solutions business needed to bring their controls and processes into compliance with new IR35 legislation.

The new risks and responsibilities of the forthcoming (IR35) legislation created some challenges for a global IT, networking and cybersecurity solutions business' well-established contingent worker programme. The company firstly needed to identify the limited company contractors (PSC's) that existed within their supply chain, and secondly establish where the responsibilities and associated risk lay for each. Further, the organisation needed to carry out employment status determinations and distribute the relevant Status Determination Statements to their contractor populations, as well as create an environment that allowed them to continue utilising independent contractors within the confines of the new legislation. This involved consultation and development of their processes and controls surrounding the engagement of their limited company contractors (PSC's).

NOTE: Whilst IR35 has been around since 2000, HMRC initially introduced changes to the legislation in the public sector in 2017 ahead of an expected roll out to the private sector in 2020. It started, then stopped, then it was postponed due to the government's response to COVID-19 and eventually took effect in April 2021.

GATE

IR35 was implemented in the public sector in 2017 and we're now starting to see the implications of pushing £200 million in liabilities for those who aren't compliant. So in a time when IR35 is involved, our team developed a programme to make sure the company was compliant but could continue to utilse the talent they need, and the fact the team won an award for it is great- that's huge, it's such a great honor.
- Mark Stringer, Business Development Director, UK

SOLUTION

Getting ahead of compliance

The organisation turned to MBO Partners to ensure that they could get themselves compliant in advance of new IR35 deadlines in April of 2021, as well as create a working environment that would enable them to continue their successful utilization of independent contractors within the confines of the new legislation. MBO initiated their proven Discover, Design and Deploy methodology to establish the foundations of a successful programme.

During the Discovery phase, MBO conducted a gap analysis and reviewed the SOW structures for the company's independent contractors, more than 500 people in total, identifying where the responsibilities and potential risk IR35 liabilities sat within the brand's current supply chain.

MBO worked with the brand to evaluate processes and controls to determine and implement compliance with IR35, as well as a "future state" programme framework.

In the Design phase, MBO worked with the client team to create and update policies, processes and controls designed to drive compliance and delivered change management consultation to help support with the adoption of the changes. During the future state design, specific attention was paid to ensure to rectify the gaps identified during Discovery, such as how to properly identify which contractors would be engaged outside of IR35.

Deployment focused on the "human element" of implementation, ensuring that client stakeholders were best enabled to adopt, utilize, and champion the program. This included change management guidelines, full legal review, development of an internal controls process, and consultation on communication templates for both internal and external use.

Further, MBO personalised a structured communication plan and training protocol for all internal and external stakeholders to ensure they were aware of the changes at each stage and what they meant. Separate educational activities were also carried out for the independent contractors to make them aware of the changes and ensure the "user experience" was maintained.

RESULTS

Protection from potential liability

In addition to protecting the global IT, networking and cybersecurity solutions brand's business from millions of pounds in potential liability, the program earned two client employees their company's CFO Compliance Award.

Industry

Networking hardware
Networking software

Number of Employees

77,500 Employees

Company Revenue

$2.19 Billion

Areas Served

United Kingdom

9.7 Million

Savings per year

£3.9 Million​

In growth

200

Ensure contractors were in the right tax structure

THE TEAM

team-mark-stringer-1.png

Business Development Director, UK

Mark is the Business Development Director for MBO's UK business unit. Mark has 13+ years of experience in the contractor compliance, contingent workforce sectors and currently leads sales and business development for MBO's UK clients.

THE TEAM

Mark Stringer

Business Development Director, UK

Mark is the Business Development Director for MBO's UK business unit. Mark has 13+ years of experience in the contractor compliance, contingent workforce sectors and currently leads sales and business development for MBO's UK clients.

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