Recruitment Database Software to Help with IR35

It is safe to assume that recruitment agencies are preparing for IR35. After all, it is only a few months till the new legislation is set to commence in April 2021. So, many recruiters must be readying themselves with IR35 software in order to help guide clients. A good recruitment software helps recruiters be prepared for all the crucial back-office work.

How Can Recruiters Distinguish If Someone Is Affected by IR35?

Well, the simple way would be to place genuine contractors as being ‘outside’ IR35. Others who are merely pretending to work as contractors are ‘inside’ IR35.

These are workers who deliver services through an intermediary but could easily be working as a direct employee, too. Hence, these contractors who are ‘inside’ IR35 are the ones who need to be very careful going forward.

Why Do Recruiters Need to Get Involved?

Companies engaging such workers will face huge fines if the government deems the workers to be within the IR35 legislation. This is because the onus is on those employing the contractors and not on the workers themselves. The companies hiring such workers will depend on recruitment agencies to guide them through this new environment.

So, recruiters are definitely expected to be able to lead their clients and help them navigate this upcoming situation. While that doesn’t mean recruiters have to be legal experts, it is necessary to have all the correct information and knowledge.

How Can Recruitment Software Help?

IR35 is coming into full force in the private sector after being pushed back a year due to the pandemic.

Recruiters who work with recruitment database software that cater to IR35 will find the software very practical and useful. It provides recruiters with all the readymade tools for easily navigating back-office work. It starts by identifying contractors who fall within IR35.

• Working with IR35 software means working with a smart recruitment software that can immediately alert recruiters if placements are ‘inside’ IR35.
• Contractor timesheets are always automatically checked for IR35. Only once they are confirmed to be ‘outside’ the legislation then recruiters can proceed with the payment.
• It also notifies recruiters if contractors are off-payroll. Then recruiters can use the software to deduct tax and NI at the source.
• Invoices are automatically generated via the software showing the breakdown of pay and tax/NI deductions.
• The software can integrate with accounts products to post-purchase invoices.

There are many ways recruitment software can help recruiters prepare for IR35. The right software will simply take the hassle of navigating this new and complex legislation away from recruiters. It allows them to channel their energies on things that they should be prioritising – networking, cultivating stronger relationships – while also helping them manage this new rule.

Recruiters can simply call recruitment software vendors to ask questions or arrange a demo. Live demos are the best and the most practical way to see how IR35 software works. Any questions they have can be cleared up during the demo. At the same time, recruiters can also see how their doubts and problems are resolved.