However, wewillalsohired a potentialopportunitythatthischangewillcreateforyou.
Thefinal 10 minutesoffthetimeallottedwillbeallocatedto Q and A.
Pleaseaskquestionsviathe Q and A booksnoworaswegothroughthepresentation.
Sostartwithintroductions.
Myname's Jeff.
Forceit.
I lookaftercorporateengagementforHayesinUK, anisland, andmostofmytimeinvolvesadvisingclientsoncontingentworkforcesolutionsonpermanentrecruitmentsolutions.
Assuch, giventhenoiseandchallengearound I'll 35 I probablyspenthalfmytimeonthissubjectareabutalsoliketointroduceChrisDung, Chris's directorinourrecruitmentoutsourcingbusiness.
Hey, TownSolutionsAndChrishasgainedstronginsightinto 2017 impactof I R.
Soourkeymessagetoourcustomerstoreallygetontothisnowaddressitnow, onceyou'veunderstooditandtryandtryandthenseesee, thisis a positivechangetogetbetterreturnfromyournormalwork.
Sowhohastherisk?
AccordingtotheHMRC, I thinkthere's lotsofmisconceptionsunderthissubject.
Whatwecanseenowinthepublicsectorandlikeyoutoosoonhaveintheprivatesectoristhattheorganizationneedtomakethedeterminationwith a quotereasonablekayandthenpassedtheresponsibilitytothefeetpayertoensurethatthetaxespaidfullintheappropriatemanner.
Therearelotsofbenefits, buthowcontingentworkersareengaged, managedandmeasuredon a daytodaybasismovingforwardmightmeanthedifferencebetweenturning a profitorloss.
Thisleadstoinefficiencies, poorcompliance, higherworkforcecostsonpoordecisionmakingbasedonincorrectassumptionsastothetruemakeupoftheorganization's workforceandnothavingthisclaritywhenHMRCcomeknockingatthedoorwiththeir I R 35 auditaskinghowmanycontingentworkershaveyouengagedlastJunelastyeartopresentday?
Ifyou'retryingtocapturethatdatareactively, itwillonlymakethejobrunning a contingent.
Workersstateharderandpotentiallymorecostcostly.
Weareallfamiliarwiththeoldmanagementaverage.
Youcan't improvewhatyoucan't measure, andthearrivalofthe I R 35 changeswillnecessitate a newapproachfornotonlyengagingandmanaging, butalsoformonitoringandmeasuringthecontingentworkforce.
The I R 35 changeswillbeanotherlayerofcompliance, that's forsure.
It's importanttorememberthatthepublicsectorhad a veryshortwindowoftimetoplanforthis, ItwasannouncedinNovember 2016 andimplementedinApril 2017 wastypically a lackofinhouseexpertiseon a shortageofresultstodealwiththeproblem.
I, likemanyorganizationswhowas a typicalapathyresistancetochange a newwaysofworkingwhichthistypeofreformbringsin.
EarlynumberstartBuildinginHouseknowledgeonthesubjectof I 35 managedthisfinallymanagethisprojectasitongoinguh, ongoingissue.
Thatsurvey, aninsight, wasusefulaswecanstarttoanalyzeandevaluatethecommercialimpact, poorlymanaged, thestateandtheconsequencesofitnotbeingreadywhen I are 35 comesin.
Weknowthatthepeopleoftheheartandthemostimportantassettoourorganization, alsooneofthelargestoverheadanyvariancesinthatpeoplecostscanhave a realimpactonbottomlineprofitability.
Resultisitcouldeffectively a roadannualUKprofitsbyanythingfrom 10 to 20%.
Sothat's a financialimpact.
WhataboutotherImpactWay?
We'retalkingto a groupand a groupHRDaboutninemonthsago, andhehadthemisfortunetowalkintohisexcoboardandannouncedthattheyweregoingtohave a 25% upliftoncostsbecauseofthe I R 35 changes.
Andisthat a realityratherthanjustwrittenonpaperonpaper?
Stepthree.
Hisreview.
ExistingcontingentWorkerengagementusingtheFree I are 35.
HealthCheckUntilthiswillgiveyouclarityonthetopicsandcriteriathatHMRChavehistoricallyfocusedonandbeforereviewthebehaviorsoftheexistingcontingentworkersonthelinemanagerstoensurethatanyinside I are 35 behaviorsareeliminatedfinallyrevieweachandeverycontracttoensuretheindividualisengagedbybestpracticeontheBestValueChannelwithatthetimeandMaterialsStatementWork.
P A y.
Asyoucansee, there's a significantwordloadtogetthehouseinorder, andthisneedstobeviewedas a standaloneprojectthatneedsmanagingmonitoringonorder, sittingonanongoingbasis.
Itdoesrequireresourcetimeuntilelementsofexpertise, butitwillsignificantlyincreaseyourorganizerreadinesstothe i R 35 risk.
Ifthereis a lackofresultsinHouse, dothisandit's definitelyworthworthapproaching 1/3 partywhohastheexpertiseon a veritableverifiabletrackrecordinthisarena.
Unlessyourapproachtoengageincontinuecontingentworkersmovingforwardisfilteredthroughthe I R 35 lens, thenthereis a significantriskofbeingexposedto I 35.
Andthenbefore, don't delaystartsoonbecausethequestiontobeaskingisnotwhetherthisiscominginornot, butratherhowyouandyourorganizationcantakeadvantageofthe I.
I thinkonehere, weuseanagencyfor a lotofcontracts.
TheonusonboatsOrshoulditbetheagency?
Um, there's a numberofsimilarquestionsinthatdomain.
Um, I thinkinterestingly, thethelegislationisaroundtheorganizationhastobethe, uh, justreally.
Determination, however, is a liabilitywithme.
Payer.
Um, I think, um, wedon't knowexactlywhatit's gonnalooklikeintheprivatesectorrollout, butwhatwhatitwouldsay?
He's thatfor a numberofreasons, I thinkititshouldbe a jointapproach.
Andyouneedtobeworkingwithorganizationsthat I understandthatthedeterminationistwowayswithitswiththetheroleoftheservice's profileandalsowiththewiththeindividualsthereisthereis a Thereis a layerthatiswiththefeet, playerandpersonthat's payingthecontractor, however, thereareotheractsbeyondthatwhichultimatelysaidtheorganizationneedstobecomfortablewith, youknow, withthedecisions.
And I thinkthat's ourThat's ourbestadvice.
Youneedtobeworkingwithorganizationswhoareassessingitin a in a trueandfairway.