71% of contractors are looking for outside IR35 roles: what can recruiters do?
It’s become one of the biggest challenges in contractor recruitment – contractors are hungry for outside IR35 roles, but there…
With accurate IR35 assessments, you’ll reduce the risk of non-compliance and potential penalties for your business.
But, with so many IR35 tools on the market – including manual, fully automated, and hybrid – which is the right one to choose?
1. Manual IR35 Tools
Where Status Assessors analyse and determine the IR35 status of a contract, based on their understanding of the legislation.
Pros:
- Expertise and judgment: Human experts can apply facts based on case law and interpret complexities that automated tools might miss.
- Customisation: Give tailored advice, specific to the circumstances of each individual case.
Cons:
- Time-consuming: The process can be slow, taking days or even weeks to complete.
- Cost: Typically more expensive, as professional services are involved.
- Less accurate: IR35 reviews can differ between reviewers depending on their interpretation of facts.
- Scalability: Less scalable as it needs human resources, which may be limited.
2. Fully Automated IR35 Tools
Where algorithms and predefined rules are used to assess the IR35 status of a contract. Users input information and the tool gives a result based on it.
Pros:
- Speed: Gives quick assessments, often in minutes.
- Cost-effective: Generally cheaper than manual assessments as they don’t need human involvement.
- Scalability: Can handle a large number of assessments at the same time, without additional resources.
Cons:
- Inaccuracy: Great for clear cut cases, when someone is definitely either inside or outside IR35, but can struggle with grey areas.
- Lack of flexibility: Limited to the parameters and rules defined within the software, which may not cover all scenarios.
- No human touch: Lack of expert judgment and advice that might be critical in borderline cases.
3. Hybrid IR35 Tools
Where initial assessments and clear cut decisions are made by automated systems, but borderline cases require human input.
Pros:
- Balanced approach: Combines the speed and cost-efficiency of automated tools with the accuracy and expertise of manual reviews on borderline cases.
- Improved accuracy: With borderline cases, the human review can catch errors or nuances missed by the automated system.
- Flexibility: Can handle a wide range of cases, including complicated and borderline situations which need expert judgment.
Cons:
- Moderate cost: More expensive than fully automated tools, as humans are involved, though generally cheaper than manual assessments.
- Time: Slower than fully automated tools, although faster than purely manual assessments.
- Complicated: May need coordination between automated processes and human reviewers, making the workflow more complicated.
Just remember, whichever IR35 tool you go for, it will only be as good as the information that goes into it.
4. Kingsbridge’s award-winning hybrid IR35 tool
How our IR35 tool works
Efficient and easy-to-use, the Kingsbridge Status Tool asks around 30 yes/no questions to make a decision on the IR35 status of an engagement.
If it’s a clear-cut case, the tool generates an instant decision, and a comprehensive report.
If it’s a borderline result, one of our in-house IR35 specialists will review it and provide a decision considering the full facts.
How we’ll support your business
With Kingsbridge, your business will enjoy expert help and guidance throughout, helping you understand the results and implications of your IR35 status.
A well-known name in the IR35 space, with a proven track record of providing accurate assessments, we’re ready and waiting to do right.
