SUPPORTING WITH SOW/ CONTRACTED OUT SERVICES

The use of Statement of Work (SoW) arrangements has significantly increased since April 2021, with many businesses adopting it as a strategy to manage their IR35 responsibilities. However, some businesses may view it as a quick fix, assuming it removes their obligations under IR35. If the SoW is not genuine, the IR35 responsibility will remain with the hirer, leaving them exposed to potential HMRC investigations, and risks of fines and penalties.

For a Statement of Work to be legitimate and comply with IR35 regulations, it must meet specific criteria. A well-structured SoW allows the responsibility for determining IR35 status to be transferred to the SoW provider, reducing the hirer’s liability. To ensure this, businesses must work with an IR35 specialist provider who understands the requirements and can implement the correct processes for compliance.

BUSINESS SOLUTION FOR HIRERS

As an SRA regulated law firm with legal professionals specialising in IR35 and Statement of Work (SoW) arrangements, Brookson Legal offers expert guidance and support to help you navigate this complex area. We ensure that your SoW agreements are compliant with the legislation, protecting your business from potential risks and penalties.

Our team can also assist in drafting bespoke SoWs if you do not have one in place but recognise the need. Once rolled out correctly, a properly structured SoW can help ensure your business remains compliant, outsourcing IR35 responsibilities to the provider where appropriate.

With Brookson Legal’s support, you can confidently manage your contracted-out services, ensuring full compliance with IR35 regulations while protecting your business from unnecessary risks.