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What IR35 means for short-term talent solutions

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By Darren Ham, Director, Professional Services Delivery at CANCOM UK&I

IR35 may have been a term that you’ve heard a lot recently, particularly with regards to flexible resourcing. While IR35 legislation has, in fact, been around for over 20 years, changes implemented in April have turned heads and left many businesses and contractors in tech and other sectors confused.

The changes surrounding just who is responsible for tax under IR35 has led to many businesses urgently wondering how they can resolve the issue of short-term staffing requirements, while ensuring that they don’t fall foul of new tax rules. In fact, from a survey of 1,500 business owners, four in ten (41%) are planning to review their use of contractors and even potentially drop them because of the changes. But what do businesses need to know about IR35, and how can they still secure short-term talent while still being compliant?

What is IR35?

Originally, IR35 legislation was introduced to help tackle tax avoidance through ‘disguised employment’, where there was hardly any difference between a contractor and an employee. The distinction of this was left to the contractor rather than the business, leaving little for the employer to consider. As of 2021, however, new changes were set in motion. Now, it is the employer who must decide whether a contractor is, in fact, under IR35 for contracted work and fill in a ‘status determination statement’ to back up their reasoning.

The decision essentially determines how tax is paid if someone is inside IR35. If a contract employee is working as a permanent employee in a business, the employer is responsible for handling tax in the same way they are for permanent staff and ensuring it is paid correctly. However, if someone is outside IR35, the contractor is responsible for their own taxes. While this seems simple enough in practice, understanding if someone is working within IR35 is more challenging. 

There are some key elements to examine when determining whether a contractor is inside or outside of the legislation. As a first port of call, consider the main factors of their day-to-day working life, such as where they’re based, who they report to, whether they have their own equipment, if there is an obligation for work, and if they are working as a substitute or replacing an existing employee – these factors must all be addressed when making the judgement call.

It’s not the end of short-term talent

Businesses working with contractors and freelancers should not stop just because of IR35, but they do need to ensure that they are well-informed and compliant with the new rules. One of the best ways to do this is to ensure they have a partnership with a business that understands individual companies’ needs, as well as the legislation details, and how IR35 impacts the organisation. It may be tempting for employers to turn away from using contractors due to an increased level of admin required, or a lack of understanding as to what is now expected of them, but this move could prove to be short-sighted and damaging when it comes to longer-term talent attraction. Especially given the benefits that flexible resourcing can provide – hiring specialist short-term expertise and temporarily increasing team numbers can provide the vital link to many projects being delivered successfully, and on time.

It’s a well-known fact that the UK is experiencing a significant shortage of workers, the worst since 1997, and those that are available may not have the skills that the tech sector in particular requires. A recent report from FutureDotNow highlights that 51% of the UK workforce does not have basic essential digital skills, such as connecting to Wi-Fi or setting up an email account. This lack of skills means that over 17 million people don’t have the required know-how for tech-based jobs, widening an already prevalent tech skills gap.

But there is talent out there; businesses just need to know where to look, even if that means looking beyond UK soil.  Many international employees aren’t subject to IR35 in the same way as UK employees, and while having a physical presence close to these potential employees has in the past been a barrier to global talent utilisation, the greater adoption of remote working during the pandemic has opened up more possibilities. Accessing talent across the world also means a wider variety of skills becomes available, which may help UK businesses maintain their competitive edge – as long as the right tech is in place, to ensure that permanent and contract staff can work seamlessly together.

Not looking back, but looking forward

While the new IR35 regulations may have taken businesses by surprise, they don’t need to signal an end to working with tech talent on a shorter-term, flexible basis. By taking the right precautions, such as specific statements of work, and ensuring that they are up to date with the right processes, they can still take advantage of the benefits that flexible workers offer.

That said, while employers and contractors are still adjusting to IR35, one option is for businesses to outsource this process to a specialist partner – a partner who understands the skills they need, to ensure the work is done by someone who has the correct training and knowledge, as well as knowing how to tackle and navigate the complexities of IR35. This way, businesses can realise the benefits that flexible resourcing can bring in and continue to harness the power of specialised skills and expertise.

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Source: http://hrnews.co.uk/what-ir35-means-for-short-term-talent-solutions/

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Apple to test unvaccinated staff each time they enter office

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Tech giant Apple has announced that from October 24, it will require its unvaccinated corporate employees to get tested for COVID-19 every time they enter office premises.

The new policy will be applicable to all Apple employees who decline to report their vaccination status to the Company.

Apple has also mandated rapid tests once a week for their vaccinated employees as well. However, employees of the Company’s retail stores will be tested for the virus twice a week, as reported by Bloomberg.

The employees of Apple will be provided with rapid testing kits so that they can take a test all on their own. The results will have to be self-reported by the employees via the internal app.

All employees have been asked to report their vaccination status by October 24. In the coming days, they will have to show proof of their vaccination.

The updated policy will be floated by November 1 and Apple has informed its employees of the same via an internal e-mail earlier. The Company hopes to open its offices to staff for at least three days, starting January 2022. However, it has said that it will announce ‘return to office’ for employees a month prior to actually implementing the decision.

The Company has been urging its workforce to get inoculated and had ramped up the optional testing programme.

The post Apple to test unvaccinated staff each time they enter office appeared first on HR Katha.

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Source: https://www.hrkatha.com/news/global-hr-news/apple-to-test-unvaccinated-staff-each-time-they-enter-office/

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Ola Cars to expand workforce by 10,000, begin operations in 100 Indian cities in 12 months

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Expanding into the vehicle commerce business, Ola Cars has revealed its plan to hire 10,000 employees in the coming 12 months. The Company will expand its operations in 100 cities and set up service centres across the country. At the time of the launch of the Company, Ola released a statement saying that it will be starting operations in 30 cities initially.

By foraying into the used cars business, the Company will soon establish itself as a complete mobility solutions provider.

The move is well timed because in five years’ time, the used car market is predicted to grow from the present 3.9 million units annually, to 8.2 million units a year, which is more than double the estimated figures for the new cars market over the same period.

Ola is eyeing $2 billion gross merchandise value (GMV) for its new vehicle commerce platform in the upcoming year. In its first month, the Company is selling pre-owned vehicles in Delhi, Mumbai, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad. It is further planning to start operations in Chandigarh, Jaipur, Kolkata and Indore by the end of this week.

According to Arun Sirdeshmukh, CEO, Ola Cars, the Company has already sold 5,000 cars in its first month of operation, and it is gearing to hire majorly for its sales team and service centres.

The Company will also look to open its platform up for new vehicles from other automotive brands as well. “Ola Cars will begin with pre-owned vehicles, and over time, will open up for new vehicles from Ola Electric and other automotive brands as well,” the Company had said in its initial statement.

The post Ola Cars to expand workforce by 10,000, begin operations in 100 Indian cities in 12 months appeared first on HR Katha.

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Source: https://www.hrkatha.com/news/ola-cars-to-expand-workforce-by-10000-begin-operations-in-100-indian-cities-in-12-months/

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Bitcoin News: IWF kooperiert nun doch mit dem “coolsten” Diktator

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Nachdem El Salvador Bitcoin vor einigen Wochen als offizielles Zahlungsmittel integriert hat, hatte der IWF die Zusammenarbeit mit dem lateinamerikanischen Land infrage gestellt. Nun hat der IWF beschlossen, die Kooperation mit El Salvador doch weiterzuführen.

Aber wie hängen El Salvador, der Internationale Währungsfonds (IWF), Bitcoin und der US-Dollar zusammen?

Wir wünschen dir viel Spaß beim Lesen!


Die Zusammenarbeit geht weiter

Auf einer Pressekonferenz erklärte der amtierende Direktor der Abteilung Westliche Hemisphäre des Internationalen Währungsfonds, Nigel Chalk:

„Wir arbeiten aktiv mit der salvadorianischen Regierung zusammen und helfen ihr dabei, einige der Risiken und Nachteile zu durchdenken und zu bewältigen.“

Denn bereits vor der Bitcoin-Adoption hatte der IWF El Salvador vor den möglichen negativen Konsequenzen dieses Schritts gewarnt. Für den IWF sind die Folgen auf die Wirtschaft des Landes durch die Bitcoin-Adoption nicht absehbar und stellen somit ein hohes Risiko dar. Ferner geht es – wie so häufig – um die möglicherweise kriminelle Nutzung der ältesten Kryptowährung. Auf der Pressekonferenz erklärte Chalk, dass man auch in Hinblick auf die Terrorismusbekämpfung einem Risiko ausgesetzt sei. Doch mittlerweile weiß man, dass Bitcoin keine zwangsläufig von Terroristen bevorzugte Währung ist.

Marc Fuchs erklärt:

„Durch die Adaption von Bitcoin hat El Salvador einen Schritt in Richtung Unabhängigkeit zum US-Dollar gemacht. Der IMF könnte mit dieser Unterwanderung unzufrieden sein und gerät somit in einen Interessenkonflikt: Eine dem USD gegenüber rebellische Nation finanziell unterstützen oder auf Opportunitätskosten durch nicht eingenommene Zinsen sitzen bleiben.“



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1,3 Milliarden US-Dollar und ein Diktator

Der Präsident der Zentralbank von El Salvador, Douglas Rodriguez, erläuterte kürzlich, dass es um eine Kreditvereinbarung mit dem IWF in Höhe von 1,3 Milliarden US-Dollar gehe.

„Wir sehen keine Risiken. Vielleicht Aufwärtsrisiken. Bitcoin wird ein Zahlungssystem werden, ein System für finanzielle Inklusion.“

Nicht nur der IWF sieht die Bitcoin-Adoption kritisch, sondern auch einige Bürger. Für den Präsidenten Nayib Bukele sind die kleinen Proteste aber kein Grund zur Sorge. Denn in diesem Retweet rückt er die Größenverhältnisse in ein anderes Licht.

Richter Esli Carrillo erklärt, warum er Teil der Protestbewegung ist:

„Wir sind auf die Straße gegangen, weil wir uns in Richtung Autoritarismus… Diktatur bewegen.“

‘El Dictador más cool del mundo mundial’: The coolest dictator in the world.
Ein Bild von Twitter

Präsident Nayib Bukele beantwortete die Proteste mit einer Veränderung in seiner Twitter-Bio zu „der coolste Diktator der Welt“.

Der coolste Diktator der Welt nutzt aber nicht nur seine Twitter-Reichweite, sondern auch Instagram. Mit den Worten „ein paar Bilder auf Instagram haben eine größere Wirkung als jede Rede in dieser Versammlung“, machte der Politiker ein Selfie auf dem Podium der UN-Generalversammlung im September.



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