Due to the Covid-19 pandemic, the UK Government has delayed the country’s IR35 reform, to the relief of many contractors. The recent announcement was made as part of the government’s £350bn financial aid to the UK economy, which includes business rate holiday, emergency loans for companies and financial assistance for the self-employed.

However, the fallout from business decisions earlier this year has already caused some damage to the contractor workers, many of whom have lost their agreements with large banking corporations and other FTSE entities. Why? Mainly because corporations do not want to be liable for a tax bill, should their contract workers be found within IR35.

So, let’s take another look at IR35:

Terminology:

Client is also known as the hiring organisation or engager, hirer or end client

Contractor worker who IR35 can apply to are those who:

• Work through a limited company to the end client
• Work through a personal service company (PSC)
• Work through a partnership
• Works as an individual (self-employed)

What is IR35?

‘Intermediaries Legislation’, otherwise known as ‘off-payroll working’.

It is a tax legislation that was introduced by the UK authorities back in 2000. It means that contract workers who work through their own Limited company or another type of intermediary to the client (i.e. Partnership, personal service company and an individual) can no longer set their tax status, instead it will be set by the business which they are contracted out to.

It is the responsibility of both the client and the contract worker to determine whether the off-payroll working rules apply.

Why was IR35 Introduced?

To crack down on ‘disguised employment’, in other words, contractors who behave as employees, and receive the same benefits of PAYE workers, but do not pay regular income tax and NI contributions.

The IR35 legislation will ensure people working like employees but through their own limited company, pay broadly the same tax as those employed directly.

What does ‘inside IR35’ mean?

It means that the contractor worker is acting to the equivalent to that of a permanent member of staff.

If you are found within IR35, it means that you will have to pay more tax, even though you do not receive benefits that full-time (PAYE) employees receive (e.g. holiday pay, sick pay, pension, parental leave).

Who is affected by IR35?

• a worker who provides their services through their intermediary
• a client who receives services from a worker through their intermediary
• an agency providing workers’ services through their intermediary

How do I know if I am inside IR35 or not?

Well, it’s not totally straightforward, so we have written a separate article to help you. Click here

If I am inside IR35, running my own limited company, how do I work out tax owed?

There are various calculators online to help you with this. We are not qualified accountants, so we suggest you speak to an accountant.

You can also find further information here:

https://www.gov.uk/guidance/how-to-calculate-the-deemed-employment-payment

Further information here:

https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

Dear Candidates and Clients,

With the uncertainty and recent developments globally regarding Coronavirus, we would like to inform you of the steps TAP Search is taking to

avoid the disruption of our services and minimise the impact on you. We are mindfully watching the developments and putting plans into place to do everything we can to keep our candidates, clients and employees safe.

We are very well prepared to continue our workflow uninterrupted. The following steps are currently in place:

• In order to ensure our business continues as close to normal as possible, home/remote working is in place
• We are fully able to conduct candidate interviews and client meetings via video and audio conferencing
• Employee covers have been arranged to guarantee all business-critical tasks are completed under any contractions of Coronavirus
• We are keeping in regular contact with all partners and suppliers who we rely on in order to understand any impacts that may affect our services
• All business travel by our employees has been postponed or cancelled until further notice

Now more than ever we all feel the importance of supporting each other and our greater industry. As we all plan for possible disruptions from Covid-19, we wanted to assure you that we are very well prepared to continue our workflow uninterrupted and look forward to remaining your committed partner as we plan for these events together. We have always been agile and taken a problem-solving approach, we will find solutions, while keeping in mind the priority of health and safety during these uncertain times.

As always, we are all accessible by mobile, landline redirection and email. We strongly value our client and candidate relationships and look forward to speaking to you and remaining a committed partner as we plan for these events together.

Should you have any concerns or questions regarding our continuity plan or any other queries, please do not hesitate to reach out.

Best Wishes and Good Health,

Natalie Thomas
Director

Written by Ana Piferrer, 14th September 2018

I recently went to see “Matilda, the Musical” and whilst it’s never been my favourite Roald Dahl story, I love a good stage musical! One of the lines that stuck with me the most was “You gotta be loud to stand out from the crowd!” sung in the most garish and belittling way possible by Mrs Wormwood to poor mousy Miss Honey. But there’s a nugget of truth in her words, and that’s what made me prick up my ears and got me thinking.

We’ve been led to believe that all that counts when looking for a new position is good exam results and ticking boxes of desirable experience in recognized organisations. I say you are so much more than your grades! You are so much more than that renowned company you’ve worked at! You are going to be interviewed by a human being with interests and hobbies and a rich life just like you. Find a connection with them.

I once heard a story of an IT professional who was applying directly for roles in large financial institutions. Underqualified for most of the roles applied for, yet he still managed to land interviews in all those companies. How did he get through to interview?? The answer is simple, but not immediately obvious.

Simply: You are more than just your CV

Not so obvious: How to show this on a CV

The individual’s recruiter understood that the hiring managers were seeking candidates who would be a good cultural fit, with the right attitude and approach, but it’s difficult to indicate your personality on your CV. It’s all well and good to describe yourself as a ‘hard working IT professional’, but it doesn’t really have any weight without evidence. Stipulating your job responsibilities and achievements is great, but your personality is still an unknown. The hiring managers wanted someone who was willing to take risk, roll their sleeves up and be dedicated.

This candidate has something very particular written in the interests and hobbies section. Turns out he had climbed Mount Everest and that had piqued the curiosity of the recruiter. The recruiter wanted to hear the details, the hows and whys, and…the but how!?? Most importantly, this gave the recruiter an insight into the candidate’s personality, what motivated them as an individual and helped the recruiter personality match the candidate to the roles.

I’m not saying that you need to take a sabbatical and risk your life, all you have to do is connect with the hiring manager on a personal level. Show them that you are more than your job, tell them that you have a love for Scotch (can we be friends?), that you have a penchant for skydiving, or explain how you managed to visit North Korea! This makes it easier for us to find points in common between you and the hiring managers we’re going to introduce you to. We are the gatekeepers, and you might have the most impressive CV, but ultimately we are looking for the right cultural fit and for candidates who are going to enjoy working with our clients and who will become intrinsic parts of their teams, not just as employees, but as people.

So whilst you might not want to give an exhaustive list of all that you do in your spare time, don’t be afraid to hint at the rich life you have outside of work. In the words of Tim Minchin by way of Mrs. Wormwood “You gotta give yourself permission to shine, to stand up and be proud, proud, proud, proud!”

As a legal recruitment consultant, working as a link between clients and candidates, I am aware of the inner workings of the hiring process that many individuals will not have considered. I take pride and commitment in ensuring that I help build the relationship between a client and a candidate, so that eachparty may get the best outcome of the situation possible.

Many of my friends are curious as to what my job actually entails and how I can really add value to the recruitment process, asking ‘What are your actual day to day tasks?’ Essentially, my role is split into two main areas, The Client and The Candidate, allow me to explain:

The Client

Without the involvement of a consultant, a client can have either a large volume of applicants – many of which will be unsuited to the role and have to be sorted through – or a small volume of applicants, or even an absence of applicants entirely. For a client who does not already have systems for recruiting new team members, this can be a time consuming and frustrating process.

The Candidate

On the other side, a candidate searching for a role must search through a large number of job ads – some of which are written by individuals with an inadequate understanding of the legal profession – and apply with a CV that may not emphasise the relevant qualities that the candidate possesses. Once the application is sent the candidate must wait for a response, sometimes not even having a contact name to follow up with and often hearing nothing back if they have not been successful.

The overall process is improved with the presence of a consultant. For the client, having a dedicated professional who understands the specifics of the role and can tailor applications means they will have a higher quality shortlist to consider. The consultant will almost certainly already have a number of high quality candidates to discuss the role with, but can also post clear and concise job adverts that notify further candidates to the role. Once the shortlist is finalised by the client, the consultant will relay all the relevant information to the candidates, meaning one conversation for the client results in all candidates being aware of the information with very little time invested.

For the candidate, the consultant can offer the role without them having to spend time searching through job listings, and can discuss the role in depth to determine their suitability. The advice that the consultant gives will set the candidate on the right course to be offered the role since they can flag up potential issues or emphasise useful qualities before the candidate even interviews. Once the process is started the consultant will keep the candidate updated throughout, with the benefit of the candidate having a clear answer at each stage. If the candidate is invited to interview, the consultant will give useful information that they may not otherwise have had, including the dynamics of the team they will potentially be joining, the style of interview and questions that will be asked, the character traits the interviewers will be looking for, and elementary interview advice that is easy to forget in the heat of the moment if not prepared.

For me, possibly the most important part of my role is once past the first stage of interviews. The relationship that is building between the client and the candidate is nurtured by the consultant, I can relay positives and negatives across to each side if they did not come up during the interview. The consultant will also be able to negotiate around the position without damaging the relationship, and can ask the more difficult questions that will move the negotiation forward without either side feeling they have to be unreasonable. Above all, while the logistics and troubleshooting of the process will be improved, it is the optimised relationships between clients and candidates that benefit all parties the most.

If you have not previously worked with a recruitment consultant, I hope you now have reasons to consider building a relationship with us. It is our job to make the best of the circumstances you are in and deliver the most beneficial outcome for you. If you would like to know more, please get in touch.

For any questions or if you would like to hear more about my role and the way in which TAP Search operates, please do not hesitate to me on 02071275274 or email robarmitage@tapsearch.co.uk

In March, the UK inflation rate dropped to 0% and economic trends showed that growth in consumer demand has increased, but as always the long-term effects can go one of two ways. Overall, it has been stated that the UK economy is still set for continued growth in 2015, but may be at a slightly slower pace. With such a variety of economic and political factors continuing to influence the economy, it can be difficult to predict what the long term future holds. So, how will this affect your legal team and how might you manage the affects in your business when it comes to making commercial decisions within a timely fashion? Well, innovation and can flexibility certainly help, it’s a question of maintaining the balance between innovation and risk.

2015 is said to be the year that the desire to take new risks is being supported by positive growth within the UK and I for one believe that agility within any business department will be crucial and is certainly something to keep an eye on.

At TAP Search we believe that recruiting high calibre legal professionals into interim and contract roles, results in greater flexibility and strength to the in-house team. We work in partnership with General Counsel and Heads of Legal nationwide to recruit staff that will add value to their teams and achieve positive results.

As the Senior Researcher at TAP Search, I thought I’d take this opportunity to tell you about some of the work I’ve been involved in recently. My team and I have been busy putting together the framework for our annual Salary Survey, the results of which we will be publishing in a few weeks’ time. I am most grateful to everyone who is kindly taking the time to complete our questionnaire – I’m looking forward to reading your responses and having a look at the results. If you haven’t had a chance to fill it in (which takes less than a minute), you’ll find a link to the questionnaire at the bottom of the page. Your responses are key to helping us produce some really useful information about the state of the legal market and to inform you about current market trends at national, regional and city level. We will also be able to provide information about what’s happening within specific sectors at this exciting time. Read more »