IR35 And Freelancers: How IR35 has driven an uptake in freelance management systems
Understanding the IR35 rules
One of the biggest driving forces behind the uptake in freelance management systems has been businesses understanding the ‘IR35 rules’ and looking for a compliant solution for working with freelancers. Instead of HR & other internal teams using time consuming manual processes, multiple tools and systems which are open to human error. Freelance Management Systems have workflows that ensure every booking is compliant, whether you’re working with a PSC freelancer, a Sole Trader or if they provide their services via an Umbrella Company.
Having a freelance management tool in-house to help onboard freelancers means your business will start any new projects with the right legal requirements in place.
Providing Compliant IR35 Assessments
Another reason many more businesses have invested in freelance management tools since April 2021 is compliance.
Being legally compliant is one of the most important features of using a freelance management tool, particularly when your company’s reputation could be at stake. Having automated workflows which are fully tracked manages the risk of reputational damage.
Freelance management tools like YunoJuno take the hassle out of your IR35 process and assessments allowing everyone to move at pace whilst ensuring total compliance.
Taking the burden off your in-house teams
With many companies having to furlough their permanent staff in 2020 and others making difficult decisions like redundancies, there’s been an increase in the use of management tools to help reduce the internal workloads.
Hiring freelancers helps businesses in many ways and enhancing your existing workforce is one of them. They can bring expertise and experience from their own career, helping to bring an external view of your project as well as a fresh perspective to help creativity flow.
In many companies the freelance contractors are the fastest growing workforce, and without proper management, can cause headaches for the time poor and potentially more stretched full time employees.
Using a Freelance Management System, gives everyone involved some valuable time back, be that the time it takes to do an IR35 assessment, or setting a freelancer up on a system to pay them, or even harder to pay them Inside of IR35.
Providing the right insurance
Insurance coverage is another key part of working with freelancers / contractors and making sure you have the right insurance in place is essential to protect both parties.
There has been a significant rise in businesses using freelance management tools to verify insurance details as well as shifting certain risks to Freelance Management Systems and Insurance companies. Using the YunoJuno Freelance Management Platform ensures:
- All freelancers are insured for their work
- £100,000 legal IR35 defence cover
- Up to £100,000 cover for taxes, interest and penalties
- 4 year coverage post contract completion.
Backed by Zurich Insurance, a globally renowned and trusted provider, who can offer the right kind of security your business needs.
YunoJuno and IR35: Solving your business pain points
Whilst we’ve always recognised the pain-points within larger businesses choosing to work with creative and dynamic teams of freelancers, many businesses didn’t.
With the introduction of IR35 in the UK, companies are now investing in clever management tools to handle the paperwork and legal requirements that come with working with freelancers.
If you would like to find out more about YunoJuno’s Freelance Management System, book a call or request further information.