success story
Beeline VMS aids IR35 compliance for UK financial services client
Beeline helps client meet labor regulatory compliance requirements of the off-payroll working rule IR35, aiding complete visibility and an auditable record of non-employee labor.
- Industry
- Financial Services
- Client Since
- 2016
- Category
- Contingent Staffing
The challenge
Our client is a UK-based financial services company headquartered in London with locations throughout the UK and operations in the US, Europe, the Middle East, and Asia. Our client offers retail and commercial banking, pensions, insurance, and wealth management as its main services. In addition to more than 65,000 employees worldwide, the company depends on the specialized skills and talents of its contingent workers.
To comply with IR35, a stringent UK off-payroll regulation, our client required additional data capture points and visibility within Beeline during the requisition creation process and on work assignment to ensure that the correct tax status determination is made when engaging with workers from Personal Services Companies (PSC).
Failure to manage and document this status determination could have exposed the client to:
- Legal action
- Reputational damage
- Financial penalties
The solution
All parties – client, MSP, VMS provider – were fully engaged from solution design to testing and deployment, making the entire process iterative and agile.
The client
Set up an internal IR35 working committee with a dedicated project manager to work with Beeline.
Beeline EMEA consulting team
- Conducted exhaustive research on IR35 with subject matter experts and collaborated with the client and MSPs to review solution options.
- Identified native and configurable features within Beeline VMS to assist in tax status determination, tracking, validating, and reporting on contractors and PSCs, as well as allowing the client to regulate umbrella companies engaged by their supply chain. Dedicated project manager to work with Beeline.
Beeline, MSPs, and the client
- Conducted design workshops with relevant business SMEs to identify an end-to-end solution best aligned to HMRC's regulations and the client’s business vision.
- Worked collaboratively in partnership to deliver an innovative and robust IR35 solution.
Implications for DBA compliance (Netherlands)
Thanks to the measures taken to facilitate IR35 compliance, Beeline and the client are ready to implement similar measures in the Netherlands in full compliance with DBA regulations.
DBA Act (Deregulation of the Review of Labor Relations) regulates the hiring of self-employed professionals. It includes a digital registration and questionnaire to help employers evaluate the employment relationship with independent contractors. With the employment environment becoming ever more regulated, it is increasingly important to manage your external workforce headcount in the Netherlands.
By bringing together strong expertise from the MSP, Beeline, and our client, the range and depth of experience ensured a best-in-class result.
The result
This collaborative approach resulted in:
- End-to-end solution aligned to HRMC’s regulations and business vision
- Tax requirements and statuses made transparent from the very start of the requisitioning process
- Client and MSPs act as gatekeepers to promote regulatory compliance
- Allowed for a 360-degree perspective of key business requirements and all operational complexities under consideration
- Resulting solution deployed was practical, robust, and auditable