Achieving IR35 compliance for a healthcare partner

HEALTHCARE PARTNER

Background

Since 2021, our client, a global healthcare partner, has been providing tailored and scaled commercial solutions for various pharmaceutical clients. Operating across Europe, they heavily relied on a high volume of contractors engaged through personal service companies, umbrella companies, and on a sole trader basis, typically for short-term consultancy assignments ranging from one day to two weeks.

Challenge

The primary challenge faced by the client was ensuring IR35 compliance for their diverse and dynamic contractor workforce. Given the short-term nature of the engagements, each assignment required a new IR35 status determination, posing a significant volume challenge. The client needed a solution that would allow them to engage off-payroll workers at short notice while minimising risk and ensuring adherence to governance.

Solution

To address these challenges, Vermelo implemented a Managed Service Provider (MSP) solution. The first step involved conducting a comprehensive audit to identify the off-payroll workforce. This information was then centralised, allowing for streamlined due diligence and facilitating quick engagements whilst ensuring compliance.

The umbrella company process was also streamlined, with Vermelo overseeing compliance and removing sole traders from the supply chain to mitigate business risks. The implementation of a technology platform enabled instant determination of IR35 status through an online portal, ensuring fair and accurate decisions. An embedded dispute resolution process and functionality for clients and contractors to accept status determination statements through an audited online trial enhanced the efficiency of IR35 assessments.

Additionally, Vermelo provided a payrolling solution, resulting in a consolidated invoicing and timesheet approval process. This not only created operational efficiencies but also reduced overall costs for the client.

Results

The integration of a scalable compliance and payrolling program allowed the client to confidently navigate the IR35 reform, meeting all legal obligations while diligently managing contingent labour. The technology-driven approach created a robust audit trail, ensuring transparency and accountability in the status determination process.

As a result, all determinations also became insurable, providing protection against fee-payer risks. The payrolling solution not only created cost efficiencies but also increased the visibility of spend, offering contractors the highest levels of customer care.

Summary

The ongoing partnership with Vermelo enables our client to not only achieve IR35 compliance but also enhance its operational efficiency. The streamlined processes, supported by technology, mitigated the risks and also positioned the client for continued success in the competitive healthcare consulting landscape.

Want to find out more? Just complete the form below or give us a call + 44 (0)1892 553360