The Adapt system is enabled for Clients to facilitate the 2021 IR35 rules against Contract Assignments if required.

The process within Adapt runs as follows:

Users can choose to default application of the IR35 Rules in their Adapt system by using the Enable IR35 Rules setting in the Adapt Manager profile-> Application Settings -> Payroll & Invoicing page:

The Enable IR35 Rules field can be set to No (IR35 Status of Off Payroll) or Yes (IR35 Status of On Payroll).

If set to No:

If set to Yes:

Note: If you don't have access to the Adapt Manager profile, please ask your system administrator or your Adapt representative to set this up for you.

If a Client is deemed exempt (too small) according to HMRC rules, users can choose to record this on the Client record in Adapt using the activity IR35 Client Exemption. This is available on the Company Information page and in the Activities menu:

Note: The Small Client IR35 Exemption flag is a manual indicator on the Client record. It does NOT filter down to Jobs and Assignments.  

An activity called IR35 Status Determination is available on a Contract Job record to enable users to record the IR35 Status Decision of that Job, if required.
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Choose from On Payroll or Off Payroll and add a reason in the free text IR35 Status Reason field. This information is displayed on the Summary page:

Note: If the user chooses to record the IR35 status and reason on the Contract Job record, it will be filtered down to the Contract Assignment record when filling the Job. It is important to note this can be amended on the booking but that any amendments made on the Fill workflow will not save back to the Job record.

To ensure users record the IR35 status for each booking, the IR35 Status and IR35 Reason fields are on the Fill Contract Job activity.
Complete or amend as appropriate:

The IR35 fields are displayed on the Details page of Contract Assignments and Contract Assignment Extension records:

A document category called CEST Results is available in the document library on Job and Assignment records to enable users to store the evidence backing up an IR35 decision.  
​Note: Clients can use the HMRC tool Check employment status for tax (CEST) to check whether IR35 applies to an assignment.
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​CEST results and any other IR35 supporting documentation can be stored here:

The IR35 Status field is available on the Adapt 'Reformatter' on Contract Jobs, Contract Assignments and Contract Assignment Extensions. This enables users to reformat their Quickfind search results to show this field:

It is also available on the Formatter Tool within the Workers and Assignment searches for Contract Assignments and Extensions.

Forecast calculations have been amended to look at the Assignment, rather than the Candidate, to decide whether PAYE or Non-PAYE calculations are required.