29 | 01 | 2021
Everything you need to know about IR35 as an interim finance professional
The new IR35 rules for off-payroll working have been delayed due to the COVID-19 pandemic, but are due to come into effect in April 2021.If you work in finance and provide services to your clients using your own limited company, these new rules could apply to you.So, let’s take a look at all the essentials you need to know about IR35…What is IR35?In a nutshell, IR35 refers to new off-payroll working rules.By bringing in IR35, the UK Government is hoping to close a loophole relating to ‘disguised workers’. These are professionals who provide their services to clients using an intermediary, such as a Personal Service Company (PSC) or their own limited company.If it wasn’t for the fact that services are provided through an intermediary, these workers would otherwise be classed as full-time employees or direct contractors. And they would be paying the same tax and National Insurance contributions.IR35 aims to ensure that all off-payroll workers pay broadly the same in tax and NI contributions.How IR35 will affect interim finance professionalsThe main change that IR35 will bring about relates to the employment status of each worker.You are likely to see your employment status change if you are an interim finance professional who provides your services to a client through an intermediary. For example, you may have your own PSC, partnership or limited company for example, or work through an agency.If you’re a sole trader, freelancer or work under an umbrella company, you shouldn’t be affected.If your client is in the public sector, they have the responsibility of deciding your employment status. If your client is in the private sector, you (or your intermediary) will be responsible for deciding the employment status for each contract.When will IR35 come into effect?Originally, the new rules were schedule to come into effect on 6 April 2020. But following the coronavirus crisis, this has been delayed in order to give businesses and workers more time to prepare. The new rollout date for IR35 is 6 April 2021. So, what happens next?If IR35 applies to you, it means that your fees from particular clients may be subject to different tax and NI contributions. The new rules may also have tax implications for the companies you work for – and some may consider their workforce planning strategy. But although there are concerns that IR35 will raise administrative and financial challenges within sectors such as finance, there is potentially a silver lining.For interim finance professionals, there will still be the flexibility to take on interesting projects with a variety of different clients – there are no drastic changes there. But what could happen is a shift towards more clearly defined projects for interim professionals.It is expected that the demand will remain for experts with highly specialised experience, to provide business solutions for specific projects. But clients will now need to give each assignment outside of IR35 a clear timescale and scope of work.Interim workers can continue to keep their distance from the politics of organisations, and put all their focus and unique skillsets into genuine, project-based assignments.Have questions about IR35? Get in touch with our accountancy and finance recruitment experts here at Sewell Wallis – we’ll be happy to help.
11 | 01 | 2021
How to successfully build and maintain a high performing finance team
Your finance team aren’t just number crunchers, and nor do they operate in isolation from the rest of the business. If you can find the right people and work hard to maximise their productivity, you can benefit from a finance function that enhances the entire organisation. Your in-house team will become trusted advisors, who add tangible value to your business. So, how do you start building this dream team of high-performing finance professionals? Of course, you’ll be looking for individuals with the right qualifications, skill set and experience to excel in a finance role. But just as importantly, you should be looking for team players with exceptional communication skills and an aptitude to add value. A compelling research study carried out by MIT a few years ago looked into what made a successful finance team. They discovered that individual talent seemed to matter far less than the strength of the team as a whole. Emotional intelligence (EQ) was found to be just as crucial as technical qualifications. According to Professor Alex Pentland, who conducted the study: “The best way to build a great team is not to select individuals for their smarts or accomplishments but to learn how they communicate and to shape and guide the team so that it follows successful communication patterns,” Since the study, major organisations such as National Australia Bank (NAB) have successfully adopted this strategy for finance recruitment. Developing a strategy for exceptional performance So, you’ve found an all-star team of experienced professionals, or bright sparks with the potential to excel within your finance team. How do you build and maintain exceptional performance? Here are some of the most important strategic points to bear in mind: Automation and super-efficient use of capacity (or outsourcing) can significantly reduce the cost of finance. In top-level companies, costs can be as much as 40% lower due to increased efficiency strategies. Improving diversity in your workforce is key to bringing a richer, broader range of ideas, talent and experience to the table. To build a great team, you need people from a range of backgrounds, who think differently and can challenge each other while still working as a unit. Your finance team need to feel valued, recognised and supported. Smart businesses will appreciate the vital role that all teams have to play and will implement ways of working and workplace benefits that foster wellbeing and employee engagement, whether this agile or flexible ways of working. Your finance team should collaborate and integrate smoothly with other key functions such as IT and HR, to increase operational effectiveness. Investing in high quality internal training is important not only for building team skills. It can also help you uncover and refine untapped talent, and mould individuals to fit the business. Trust and open communication with your finance team is everything. Employees who are trusted, valued and rely on honest communication from management are more motivated, and more likely to innovate. If you’re ready to supercharge your finance team, we’re here to help. Get in touch with our specialist accountancy and finance recruitment team here at Sewell Wallis to start your search for talented professionals who can drive your business forward. Call us on 0113 242 1200 or email email@example.com.