Partnership: Parasol | Managing IR35 Reform

Who are Parasol?

In preparation for the rollout of IR35 reform in the private sector on 6th April 2021, two of the most prominent sector specialists, Qdos Contractor and Parasol, worked together to provide recruitment agencies with a complete end-to-end solution to the changes.

Parasol have managed payments and accounts for over 100,000 contractors and built long-standing relationships with over 3,000 recruitment companies since 2000, becoming one of the largest and most trusted umbrella companies in the industry.

Solving the industry's needs together

IR35 reform was introduced in the private sector on 6th April 2021 resulting in medium and large companies becoming responsible for determining the tax status of the contractors they engage. As part of these changes, the fee-paying party, which is often the recruitment agency, will carry the IR35 liability. It means many agencies are seeking compliance services to help their clients manage the rules.

Parasol recognised the importance of supporting all stakeholders in the supply chain and so after a thorough review of options for status specialists, determined that Qdos offered the most secure and comprehensive service to agencies.

This partnership provided Qdos with the ability to refer fee-payers to a trusted service should, following an inside IR35 determination, they choose to engage contractors through an umbrella company.

Together, Parasol and Qdos provide a complete end-to-end solution.

"This partnership is a 360 degree, end-to-end IR35 solution, ensuring those who are genuinely outside of IR35 can continue to work in this manner whilst giving their business a commercial edge." - Clarke Bowles

The complete solution to IR35 reform

More than simply an IR35 tool – Parasol x Qdos is a unique solution brought to you by two industry leaders that provides agencies and their clients with a full support service. It allows businesses to develop a measured and compliant strategy for managing IR35 reform.

Status Review

By utilising the Qdos Status Review service, agencies can provide end-hirers with a fair and robust compliance solution. This includes a range of services, such as initial audits, ongoing consultancy and IR35 assessments carried out by trusted experts.

74 Parasol agencies able to provide fair and compliant assessments for their 300+ clients (as of April 2020)

86% of assessments prior to April 2020 determined as outside IR35

Business Impact Tool

Through Parasol’s Business Impact Tool, agencies can immediately have full visibility of the potential financial implications of IR35 reform. This helps end-hirers to weigh up the risks versus costs of IR35 decisions, enabling them to develop an informed strategy for IR35.

112 Agencies successfully assessed the cost impact of IR35 reform

Professional woman in office environment

Umbrella Solutions

Where an assessment results in an inside IR35 determination, agencies have various payment options. Parasol assist the agency with their trusted umbrella solution where agencies choose to take this route.

"This industry-first partnership has the potential to help all recruiters impacted by IR35 reform successfully navigate the off-payroll working rules, enabling businesses to minimise disruption, retain their contractor workforce and ensure compliance" - Dom Johns

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