The Adapt system has been enhanced so that Clients can facilitate the new IR35 rules against Contract Assignments if required.
The process within Adapt runs as follows:
What are the Changes in Adapt?
If a Client is deemed exempt according to HMRC rules, users can choose to record this on the Client record in Adapt using the new 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.
A new activity called IR35 Status Determination has been introduced on a Contract Job record to enable users to record the IR35 Status Decision of that Job, if required.
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 Job record, it will be filtered down to the Assignment record on booking. It is important to note this can be amended on the booking.
Contract Booking Changes
To ensure users record the IR35 status for each booking, the IR35 Status and IR35 Reason fields have been added to the Fill Contract Job activity.
Complete or amend as appropriate:
The new IR35 fields are displayed on the Details page of Contract Assignments and Contract Assignment Extension records:
New Document Category
A new document category called CEST Results has been introduced to 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.
CEST results and any other IR35 supporting documentation can be stored here:
Adapt Reformatter and Searches
The IR35 Status field has been added to 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 has also been added to the Formatter Tool within the Workers and Assignment searches for Contract Assignments and Extensions.
Points to Note
- It is not possible to modify the recorded IR35 Status once a worker is booked into an Assignment. If an incorrect IR35 decision has been applied to a booking, it will need to be cancelled and recreated.
- Forecast calculations have now been amended to look at the Assignment, rather than the Candidate, to decide whether PAYE or Non-PAYE calculations are required.