The new service helps ensure compliance can be met for the new IR35 rules taking effect from April 2020, when the IR35 ‘off-payroll’ rules will be extended to the private sector.
Crunch said with many recruitment agencies “concerned” about how they will survive under the new IR35 regulations, this new solution calculates the status for each contractor. Dependent on the results, Crunch will then offer a range of packages and tools to help contractors deal with all IR35 eventualities.
The digital agency added that despite recent updates, HMRC’s CEST tool has been “widely discredited” as being too reliant on substitution clauses and completely ignoring Mutuality of Obligation (MoO), which is why Crunch built in the IR35 calculator.
Darren Fell, CEO and founder of Crunch, said: “We are delighted to be the first to offer this full end-to-end IR35 solution for the many millions of UK contractors and the UK’s recruitment agencies supplying the contracts. It gives agencies and contractors the confidence that they can continue to operate, whilst ensuring they are working within the new IR35 regulations.
“However, as the UK prepares for this change in April, I think it’s an important time to discuss the growing debate over HMRC’s unfair focus on small business.”
He added: “There’s an opportunity for future government strategy to prioritise the tax gains from larger technology firms that are operating in the UK.
“Many of whom are posting substantial profits, whilst contributing very little to the Government’s purse. Why should contractors be paying a higher taxable price from April next year, when the largest tech firms contribute very little?”