Case Study: Orion Group | Managing IR35 Reform

How a global recruitment agency successfully managed IR35 reform

In its 33-year history, Orion has grown into one of the UK’s leading recruitment agencies for contractors working in fields such as Oil & Gas, life sciences, construction, IT and engineering. At any given time they have thousands of contingent workers engaged on assignment.

In preparation for the rollout of IR35 reform in the private sector, Orion knew the importance of ensuring contractors have IR35 status determined correctly.

This is because fee-paying recruiters were becoming liable for IR35 when placing contractors with medium and large businesses.

Orion has a long history of working with Qdos on IR35 matters. With provision of an easy to use interface and realistic response timelines, Orion has been delighted with the services provided by Qdos, who has carried out many IR35 assessments and implemented a range of solutions for various clients.

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The Challenge

Having helped contractors safely determine their own tax status since the IR35 legislation was introduced in 2000, Orion had a firm understanding of the off payroll working rules.

As a result, Orion realised the reform presented many challenges to recruiters like themselves. These included:

ensuring the consistent application of IR35 determinations
time constraints
the ambiguity of the IR35 legislation
the significant financial risk they would soon shoulder

Orion also knew that collaborating with hiring organisations to help ensure compliant IR35 assessments would be crucial in minimising the risk they will be exposed to. However, the business required objective IR35 expertise to assist with this – a trusted partner to carry out compliant IR35 status reviews.

They also needed an IR35 insurance policy to protect the liability they were set to carry.

The Solution

Having worked successfully with Qdos for a number of years, Orion adopted the Qdos Status Review facility – an end-to-end IR35 service which offers full visibility of IR35 processes and minimises risk under the off-payroll rules.

On Orion’s behalf, Qdos began collaborating with hiring organisations, conducting thorough, case-by-case IR35 assessments.

Contracts deemed outside IR35 were then protected by insurance, which covers the cost of IR35 defence, and resulting tax liabilities and penalties.

When appropriate, a number of contracts recognised as a genuinely outsourced provision of labour were engaged under a Statement of Work (SoW).

How Qdos helped

Status Review Service
By carrying out trusted, expert IR35 Contract Reviews on a case-by-case basis
Statement of Work
A number of genuinely outsourced service providers were engaged under a Statement of Work
Insurance
Put in place to protect Orion from the risks they will carry as the fee-payer

The Outcome

Orion were able to assist 6 key clients with a compliant IR35 service
93% of the 269 assessments completed before April 2020 were determined outside IR35
Orion strengthened their relationship with contractors and clients
They also gained a significant competitive advantage

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Orion Group Case Study