The current Covid-19 crisis has forced us to reassess almost every aspect of how we live, work and play. The contractor workforce have faced months of uncertainty as a result of the impending changes to the way IR35 rules are implemented. A growing number of contractors offering their services through intermediary companies, have been considering their options, as companies impose blanket assessments and bans on engaging contractor talent through Personal Service Companies.
Following last week’s announcement that the Government will be introducing private sector IR35 reforms in April 2021, IR35 is back in the spotlight, bringing a second wave of uncertainty to the UK contractor community, having already endured a rollercoaster start to 2020.
Rewind to a few months ago: prior to the deferral, it was well publicised that large corporate organisations had adopted a risk-averse approach to the reforms by imposing blanket bans on PSC contractors . This left thousands in the freelance community with a difficult choice to make – go permanent or work through an umbrella company.
According to contractorcalculator.com, “63% of contractors are considering changing careers while 40% say they may quit contracting altogether,” rather than being forced to go on payroll.
IR35 doesn’t have to mean turning the contracting world on its head. It’s still possible for contractors to continue working through limited companies and stay on the right side of HMRC. Yes – a third option (and the perfect solution!) that’s outside IR35 and fully compliant, really does exist.
The Colnort alternative is here and it’s making companies think differently about how they engage contractors and get critical services delivered. As Covid-19 forces us to make radical changes and adopt ‘a new normal’, now’s the time to shake up the system – and work the way you want.
An innovative new model
With Colnort, you can work as a PSC and still meet IR35 criteria. How? As the primary service provider, Colnort will sub-contract your services under a robust service-based framework that is compliant with an outside IR35 determination. Join the Colnort community to get visibility and keep updated with our new service requirements, or choose to deliver your services directly via Colnort rather than use an umbrella company.
Not a workaround solution
Using our partners, Colnort conducts a status determination test to fairly and accurately determine IR35 status for each and every engagement. We then provide ongoing service delivery management to ensure contractual deliverables are met and working practices remain outside of IR35. This allows all parties to engage confidently without any IR35 ambiguity and, most importantly, keeps you in the driving seat.
Colnort’s innovative and disruptive business model has been featured by Bloomberg, Reuters and Yahoo Finance. Check out our advice piece written by Martyn Valentine, expert IR35 lawyer, who explains why the Colnort alternative is the right solution for all parties.
Free registration – and fast, simple set-up
Once you’ve registered for free with Colnort, there’s a simple, automated on-boarding process. Of course, we’ll give you any support you need and look at your situation in detail. Once you have been successfully onboarded, you’ll be free to operate as a limited company outside IR35. with added peace of mind. The next step is a service agreement and getting down to work. Let us deal with the rest.
Get paid quickly and reliably
With Colnort’s service-based agreements, you know exactly where you stand. You work to set monthly targets and milestones, which are agreed and set out in your contract. You’ll be paid within 48 hours of the invoice sign off. And, if clients are late paying, we’ll protect you commercially against the risk of delayed or unpaid invoices.
April 2021 will bring changes, whatever path you choose. But with Colnort, they don’t have to be drastic – and you can stay in control. Make sure you’re tax-compliant, prepared for the future and in the driving seat. The world is changing fast. So should the way you work.
For more information, please visit www.colnort.com To get started, contact us on 0203 971 5567 or email email@example.com