London, Tuesday, April 7, 2020 - While many are grappling with the IR35 tax changes, start-up company Colnort has taken an innovative approach by creating a disruptive business model to cope with the new legislation. With advantages for both contractors and businesses, the new model offers a stress-free way of managing the tax reforms to keep all parties compliant outside the scope of IR35.
Changes to IR35 have sent ripples through the private sector. From 1st April 2021, new tax regulations will apply to contractors who work through Personal Service Companies (PSCs) and the businesses that employ them, adding to the burden of those who are already battling the consequences of the spread of COVID-19.
Drawing on 30 years’ experience in the consulting industry, Colnort has created a new service model that takes the stress of IR35 away, while benefiting contractors and companies alike.
How does it work?
In short, Colnort’s ‘outside IR35-friendly’ solution allows both companies and contractors operating their own limited companies (PSCs) to work within a fully compliant service framework verified by the UK’s leading IR35 expert lawyers. Colnort becomes the service provider, taking on the IR35 burden and absorbing all liability.
Colnort’s model enables contractors to continue operating their businesses. Meanwhile, companies can migrate or onboard contractors under pre-defined, outcome-based service agreements. Onboarding is fast and efficient, thanks to Colnort’s seamless and fully automated process. Working with trusted partners, each engagement will be thoroughly assessed to ensure outside IR35 status, and we provide ongoing service management to keep it that way.
Contractors affected by IR35 may be resigned to choosing between an umbrella company or permanent employment. Colnort’s model offers a third solution where contractors can continue as before, but on deliverable and outcome-based service agreements. What’s more, contractors are paid within 48 hours of their work being approved!
Colnort’s co-founder, Michael Cleavely said, “While these features make Colnort’s model highly attractive for contractors, the seamless on-boarding process and free IR35 tax insurance make it a special and unique offering. We’ve worked tirelessly to make this simple, flexible, cost effective and painless for contractors and continue to work to find ways to improve our offering further.”
The Colnort model brings major benefits for businesses too. Chris Jones, co-founder and director describes how Colnort’s managed service solution can help companies get their affairs in order before April 2021:
“Now is the time to prepare. Companies must think about doing things differently - adapting their processes and engaging contractors in the correct way. We have seen companies taking the step of banning PSC contractors altogether, but there’s a far less drastic option. Colnort removes the burden of IR35 and helps companies to attract, retain and on board the very best contractor talent through outcome-based service contracts.
Colnort’s outcome-based agreements help drive greater productivity and results for our clients, allowing companies to maintain a competitive edge through an agile and flexible workforce. We also manage compliance, contractual governance and invoicing, allowing companies to focus on their core business.”
Colnort’s business model has been verified by the UK’s leading IR35 expert lawyers to ensure all contracts and working practices are fully compliant and in accordance with legislation.