The complexity of managing contingent workforce compliance can be overwhelming for organisations in the UK, particularly when it comes to critical areas like IR35. Auxo’s Contingent Workforce Solutions (CWS) use innovative Managed Service Programmes (MSPs) to transform this challenge into a strategic advantage while reducing your compliance risks.
What is IR35 in the UK?
IR35 is a UK tax legislation introduced in 2000 to prevent contractors from exploiting tax loopholes by operating through limited companies while essentially functioning as employees, resulting in lower tax payments. Since April 2021, medium and large organisations in both private and public sectors must determine their contractors' employment status and ensure appropriate tax deductions, including income tax and National Insurance Contributions.
What are the risks of IR35?
Businesses that misclassify contractors under IR35 legislation can put themselves at serious risk, which can impact revenue and operational efficiency. The financial exposure can result in organisations facing significant tax liabilities and National Insurance Contribution demands, along with associated penalties and interest charges from HMRC.
Aside from the immediate financial implications, organisations face other serious repercussions, including:
Disruption to business continuity during HMRC investigations
Resource drain from managing compliance challenges
Potential loss of key contractor talent
Damage to the employer brand and market reputation
Reduced ability to attract top contingent talent
Increased operational costs and financial inflexibility
The Auxo XPO advantage
Our MSPs delivered under Auxo XPO’s CWS offers a comprehensive solution to these compliance challenges, including:
Expert classification management
Tailored IR35 assessment frameworks
Balanced risk approach to maintain talent access
Strategic guidance on contractor engagement models
Comprehensive compliance control
Centralised workforce management
Standardised compliance processes in line with labour laws
Real-time tracking and reporting systems
Total compliance management
Our MSP solution extends beyond IR35 to address the full spectrum of workforce compliance requirements, including:
Expertise in diverse labour regulations
Standardised processes across all compliance areas
Proactive risk management and mitigation
Regular compliance audits and reporting
With Auxo XPO, your organisation can transform its compliance management from a risk factor into a strategic advantage, ensuring both regulatory adherence and operational efficiency.
Our robust MSPs provide the framework, expertise and systems needed to navigate complex compliance requirements while maintaining business agility. Through our comprehensive approach, we help your organisation minimise risks, protect its reputation and maintain access to vital contingent talent.
Revolutionise your approach to contingent talent acquisition!
Get in touch with us to find out how Auxo XPO can transform your talent strategies while keeping you compliant.
