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Remove the headache of IR35

Mitigate risk and save money

What is IR35?

Back in March 2020 the IR35 tax announcement from HMRC understandably got companies’ heads spinning and was subsequently delayed until April 2021 due to the COVID-19 pandemic. The new tax legislation came into effect last month (April 2021), to close a loophole that has enabled individuals working in a similar way to an employee under the guise of a limited company for tax benefits.

Why IR35 is a headache for private companies

IR35 means that for private companies using contractors, income tax and National Insurance (NI) will need to be paid on behalf of the contractor.

Also, there is no clear statutory definition of a ‘Contractor’ unlike other definitions being very clear for ‘employees’ and ‘workers’. This has led to some scrutiny of HMRC, due to the unnecessary risk placed on organisations when trying to determine if IR35 applies to their contractors. The concern is that companies incorrectly determining if a contractor falls outside of IR35 could lead to HMRC tax avoidance fines.

Buy outcomes not people

Outsourcing your IT Support could be an opportune way to mitigate any risk of fines but more importantly will offer businesses a blend of skills needed to drive IT projects forward without incurring the additional tax overheads that’ll be associated with using contractors. With a Managed IT Service Provider, you will have complete control over fixed IT budgets.

Our Managed IT Services are outcomes focussed. Our straight to 2nd line Service Desk model results in a higher first contact resolution delivery to end users, with a proactive and reactive team split proven to reduce overall incidents. Our reactive team focus on rapid reaction to service incidents allowing our proactive team to focus on service requests.

The need for specialist IT skills

We provide specialist knowledge that won’t lead to large overheads in the form of salaries they can demand. We provide regular training for all our highly skilled IT Support Engineers and Cyber-security experts, removing the cost for training and the recruitment fees associated in finding talent in the first place.

We also understand that contractors typically command inflated salaries which not only incur increased costs for companies but can also frustrate full-time employees contributing the same output but on a lower wage.

Why Optimising IT can help

With our blend of skills, access to specialists in cyber security and technical project delivery (provided on demand), and efficient Service Desk IT Support model, we can help save you money, mitigate risk, and deliver the outcomes you need.

Our results speak for themselves. nGAGE, a UK-based Global specialist recruitment group – saw an uplift in their First Contact Resolution from 58% to 85% in the first month. We reduced ticket ratios from 2.8 to 1.2 per user per month within the first six months.

If you would like to find out more about our Managed IT Service offering, please get in touch by calling (0)1242 505 470 to speak to one of our IT consultants.

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