The IR35 changes introduced in April 2021 still have the potential to trigger soaring employment costs for businesses and present new compliance burdens. Despite objections from many business leaders, the government pressed ahead with major reforms to off-payroll tax regulations which employers now have to deal with. 

Colnort has successfully disrupted the IR35 space with its innovative business model created for medium and large businesses in the private sector. This real-time solution eclipses all existing ones by shifting the IR35 compliance and liability burden away from the employer.

Colnort becomes your service provider removing any IR35 uncertainty and through our insurance partners remove any IR35 liability by underwriting the risk for the entire supply chain!

A shift away from contractors?

As HMRC tightened the net on IR35, the reforms rattled the private sector and proved to be a red-tape headache for firms. All companies must examine the employment status of contractors and decide if they fall within or outside the current IR35 legislation.

The new rules are still largely untested and therefore grey areas exist. But, if companies get it wrong, they could be hit with financial penalties. HMRC thankfully stuck by their promise to be lenient for the first 12 months.

Faced with complex and expensive processes, many businesses simply don’t want the hassle.

A new report published when the proposals were put forward claimed that 20% of UK businesses would rather axe their contractors completely than deal with IR35. Indeed, several major banks began operating blanket IR35 bans on contractors. The message seemed clear: go permanent or go home. Those that chose the latter leave projects in limbo and businesses short of valuable staff.

The economic impact

With a vastly depleted workforce, productivity is still in danger of taking a serious hit. A report from online accountancy group, inniAccounts, claimed that changes to IR35 could lead to a “£2.2bn immediate cost to the economy.” It’s currently too soon to tell if this prediction came true.

The report went on to state that just under 53% of contractors would prefer to leave their existing jobs immediately rather than accept the new rules as the norm. In short, enforcing the new IR35 tax changes could have led (and still may lead to) to a mass contractor exodus.

The Colnort alternative

Such predictions present a bleak outlook for UK businesses.

However, with Colnort’s innovative new operating model, companies can recruit teams (or transition existing contractor staff) onto outcome-based service agreements.

Colnort becomes the end client and takes on their IR35 burden.

It’s a concept that’s fully compliant and ‘outside IR35-friendly’ allowing businesses to retain the contractor workforce. And best of all, it gives companies the chance to focus on what’s important: the success and growth of their business.

Time to do things differently?

Colnort’s solution enhances the performance and output of both individual contractors and teams. One-off engagements and long terms projects are underpinned by deliverables and outcomes.

Through deliverable and outcome-based agreements, companies can truly leverage the benefits of a flexible workforce. It’s all about driving productivity and efficiency to increase daily output.

The process is fast and convenient, enabling companies to onboard staff quickly.

It also ensures employers have the pick of IR35-compliant talent.

Perhaps most importantly, the Colnort business model has been verified by the UK’s leading IR35 expert lawyers. We even underwrite the risk for the entire supply chain, indemnifying you against any liability, just for extra peace of mind!

Who are Colnort?

With over 30 years’ experience of delivering talent and project services to SMEs and major global enterprises, we recognise the incredible value that contractors bring to businesses. We have a deep understanding of the consultancy world and strive to help clients manage onerous paperwork and complex compliance issues. Read more at

Why not let Colnort take the worry, expense and complexity out of your IR35 arrangements? Let us manage the process so you can focus on other business priorities. Call us now on 0203 971 5668 or drop us an email at [email protected]

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