SUPPORTING WITH SOW/ CONTRACTED OUT SERVICES

There has been significant growth in the use of Statement of Work (“SoW”) since April 2021, as some businesses see this as a quick fix to get around their IR35 responsibilities. Where this is not a genuine SoW, the IR35 responsibility will remain with the hirer, leaving the business open to an HMRC investigation, with a likelihood of fines and penalties. A legitimate SoW enables the responsibility to determine an IR35 status to be outsourced to the SoW provider.

To ensure a Statement of Work is legitimate and complies with the legislation, businesses need to work with an IR35 specialist provider who has the knowledge to put the correct processes in place, in order for them to remain compliant.

BUSINESS SOLUTION FOR HIRERS

As an SRA regulated law firm with access to legal professionals who specialise in IR35 and SoWs, we are able to work with you to ensure all SoW arrangements comply with the legislation and provide support with any changes required. If you don’t have a SoW in place but think one is needed, we are also able to support with drafting a bespoke SoW that once rolled out correctly, will allow you to remain compliant.