How KDC is Mitigating the Risk of IR35 Changes

We began planning for these changes well over a year ago to ensure we were ready. It is particularly important for us because of how we structure our business. Here is a rundown of how we plan to mitigate the risks presented by the new IR35 legislation.

The KDC Approach

We started reviewing the legislation in late 2019 and into 2020 to ensure we understood the coming changes. IR35 presents itself as complicated legislation, and we know we are not alone in thinking this. Therefore, we took the time to review everything cautiously, so we were aware of the risks it presented to individuals, customers, and KDC itself.

Along with this, we engaged with our customer base to discuss how they were going to tackle the changes, their larger approach, and how this applies to the “at-elbow” support and work packages we provide. Thankfully, we found that our customers are also taking a cautious approach to the changes and that our preparations align with their own.

Additionally, we liaised with contractors individually to understand their preferences for working practices post-change; we then began arranging these revisions to support the changes and to make the transition as smooth as possible.

These discussions with customers and contractors allowed us to put mitigation plans in place and to ensure we maintain continuity throughout the transition period and into the next financial year. We will continue to monitor our engagements and adjust plans as the fluid situation unfolds. Of course, we would like to take this opportunity to thank our customers and contractors for their valuable feedback and understanding.

The Changes We Have Made

Luckily, our customers’ and contractors’ valuable responses have allowed us to make changes before the deadline, meaning we should see minimal disruption in the coming financial year. While the government plans to waive fines related to mistakes between April 2021 and March 2022, we are sure everyone involved would much prefer to avoid these altogether.

The most important change we have made is to update KDC limited company contracts to ensure they are compliant with the upcoming legislation. Reviewing and updating them before the deadline means that, from April 2021, our contracts will be correct and legal.

We also plan to constantly promote the fixed-price work package outsource model that is our preferred method of engagement. Importantly, this model minimises the impact of IR35 while providing the maximum benefits to our customers. Therefore, while we have made our contracts legally compliant, we do not foresee much disruption due to our preferred method of working.

Conclusion

Here at KDC Projects, we value our customers and contractors as extensions of our business. We appreciate the potential disruption IR35 might cause to a business like ours, and so we want to be as transparent as possible at this time. Of course, if you have any questions, please feel free to reach out to us and we can discuss things further.

Again, we would like to thank all our customers and contractors for their valuable feedback and understanding during this transition period.