A lot has changed over the years, and we’re delighted to reflect on the evolution of our service offering as we’ve continued to understand what our clients need from a workforce solutions partner. 

ESTABLISHING A NEED FOR LINX 

Our business grew from conversations within the wider NRL Group that we could better support clients, one in particular at the time, with a more structured and centralised managed service. This would fix the fragmentation companies often see in large multi-agency recruitment supply chains and establish more visibility and control of the end-to-end recruitment process. 

MSPs and RPOs already existed in the market, but at the time these usually felt like an off the shelf solution that businesses needed to fit their operations in to – paying for the whole package even if they didn’t need all of it. That’s where our approach differed, instead we’d create tailored solutions that could be custom built around what each client needed. Whether that was greater control over how their recruitment agencies were operating, a more centralised process for standardising worker engagement and agency terms, or overarching compliance governance – we’d take it all into account. 

We were certain on one thing: every Linx solution would probably look different – because we’d create them around the client instead of asking them to work to our rules.  

Welcoming on board our first managed service client 

That bespoke approach is exactly what happened with our first client, and it’s a company we’re proud to still be supporting today as we’ve grown and developed our managed service provision around their changing business needs – including extending our services into other countries in Europe. 

Our Client Services Director Richard Hanson reflects on Linx’s very first contract win: 

“As any business owner knows, the work that goes into setting up operations for your first client often incurs sleepless nights, a tremendous amount of planning and a leap of faith from stakeholders. I’d joined the business at a crucial time, the contract had been won, and the work was starting to implement the solution and engage the client’s supply chain. For someone with an appetite to get my teeth into a project, it was an extremely rewarding time that flew by as the solution quickly came to life. 

Everyone says these things are a team effort, and it’s most certainly true of those first few months of building the client solution. From scoping and developing a vendor management system, to drafting communications to suppliers and hiring managers, and engaging stakeholders through a change management programme. We covered a lot of ground in a very short space of time, and the fruits of that labour were evidenced in the coming months and years as we recorded impressive cost savings and efficiency gains.” 

Expanding our services 

Over the years we’ve recognised how we can better support our clients and what gaps there are in the market for our specialist services. This has seen our business evolve into a workforce consultancy partner that can help with people management, regulatory compliance and project delivery. 

Driving hiring visibility 

Whether our clients are looking for support managing their temporary or permanent workforce, we create centralised solutions that gain transparency across all areas of the hiring process. From agency terms and payment timescales to standardised rates of pay or visibility of labour spend – we help transform how businesses manage their recruitment. 

Formalising our compliance capability 

Compliance is a crucial element to recruitment, especially when companies engage recruitment agencies to manage temporary workers on their behalf. It’s an area we’d been supporting clients with for many years, resulting in us formalising this capability through our Compliance as a Service solutions. Some of our clients may not need support managing their recruitment, but they value an external, impartial, consultant who can identify potential risks and implement robust processes to ensure compliance. 

Moving into project support 

From Statement of Works to Employed Resource Models and contracted out services, IR35’s extension to the private sector changed how businesses secured specialist services for their projects. So did the solutions we provided to clients, as we advised them on the most compliant way to ensure they could attract the skills needed to meet key project deadlines. It’s an area of our business we continue to development, as we expand on our core services. 

looking ahead to the next 10 years 

Hitting the 10-year milestone has already got us thinking about the next decade. As a business, we’re always interested in identifying how we can better service our clients and what solutions we need to develop to meet future workforce demands. 

That’s what makes us a key supply chain partner and if that’s something that resonates with you, then we’d welcome a conversation about your current workforce challenges. In the meantime, we’ll be hard a work developing the next generation of our service offering. 

The post Celebrating 10 years of Linx  appeared first on Linx.

Why this matters for businesses

Previously there was no formal requirement for businesses to provide trade unions with access to their workforce. The new rules give independent trade unions the legal right to access workplaces and meet both members and non-members, either in person or digitally. These visits will need to be governed by a statutory access agreement that clearly outlines the terms of engagement, covering who can attend, where meetings take place, and how they are carried out.

Trade unions may informally request a voluntary access agreement in the first instance, following this with a formal written request if a voluntary agreement cannot be reached. Employers will be required to respond to written requests with 15 working days, with a clear escalation procedure if both parties cannot agree mutual terms.

Understanding and managing these new obligations will be critical for organisations responsible for large workforces, particularly those engaging temporary or contract workers through multiple supply partners where wider considerations will need to be made.

Looking ahead to January 2027

Further updates from the UK government will follow in the coming weeks, detailing the requirement for employers to provide formal written statements informing workers of their right to join a trade union. Effective from 1^st January 2027, early indications suggest it will be mandatory to communicate this new right prior to starting employment and repeated annually thereafter.

Ensuring supply chain transparency

One key challenge raised by the new trade union rights is ensuring that regulatory compliance extends beyond direct hired employees. For businesses working with a network of suppliers to manage their contract workforce, it will be essential to verify that every worker is provided with timely communication, and accurate record-keeping processes are in place with suppliers to evidence adherence with the new trade union rights.

Richard Hanson, Client Services Director at Linx, highlights the importance of this proactive approach:

“Transparency is vital when it comes to compliance. Businesses that work with multiple recruitment suppliers to manage their contract workforce have an obligation to ensure every worker has been informed of their rights and that there is a clear audit trail. Regular compliance checks across supply chains are essential to maintain trust and be ready for changing regulations.”

How Linx can help

At Linx, we partner with HR, compliance and legal teams to align workforce communication and reporting processes across complex supply chains. Our latest compliance update provides detailed guidance on what’s changing when it comes to managing trade unions in your workplace, when the updates come into effect, and the key steps businesses should take to remain compliant.

Download the trade union rights guide

To review the full details of these legislative changes and ensure your business is prepared, download our latest compliance update today.

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What is Compliance as a Service?

CaaS is a managed model that centralises compliance frameworks for businesses engaging contingent labour or operating across multiple jurisdictions. Rather than relying solely on an in-house compliance team, organisations outsource these functions to compliance experts who apply best practice, automation, and industry standards to achieve consistent regulatory adherence and user experience.

CaaS offers:

• Independent governance: Impartial management of compliance across suppliers
• Continuous monitoring: Ongoing oversight and audit readiness
• Proactive risk management: Tools and processes that identify vulnerabilities early

Why is CaaS important?

Every business faces compliance challenges as regulations and industry standards evolve. Organisations managing multiple recruitment agencies often experience inconsistent processes, leaving gaps that escalate compliance costs, create legal risks, and damage scalability.

While suppliers hold obligations, the end client bears the consequences if issues arise – ranging from regulatory fines passed up the chain, to reputational harm.

Risks of non-compliance

Failure to maintain a robust compliance framework can result in:

• Fines and financial loss due to IR35 or similar legislation breaches
• Legal consequences and HMRC scrutiny without defensible processes
• Reputational damage and erosion of client trust
• Operational delays from disputed assessments or missed regulatory updates

Even strong internal teams can struggle to keep pace with frequent regulatory updates and complex supply networks – a key reason businesses outsource compliance management to specialists.

When should organisations consider CaaS?

CaaS is a strategic move when:

• Scaling operations into new markets where regulatory updates are frequent
• Managing compliance costs
• Outsourcing reduces overhead compared to in-house teams
• Multiple tiers of suppliers create inconsistencies in compliance processes
• Expert support is needed to meet industry standards efficiently
• Continuous monitoring is required to ensure audit readiness

CaaS provides scalable and flexible services, reducing the compliance burden while preserving credibility and operational resilience.

Still not sure if your organisation needs Compliance as a Service?

How do providers deliver CaaS?

A trusted provider like Linx delivers through:

• Suite of automated tools for analysis, document control, and reporting
• Continuous monitoring to prevent compliance gaps
• Expert audits and guidance to align with evolving regulations
• Integrated risk assessment tools to mitigate risks before escalation
• Robust security measures to ensure data protection

These combined solutions standardise compliance strategies, improve cost-effectiveness, and support future readiness.

Why centralisation matters

Many businesses assume suppliers manage compliance consistently, but this rarely happens. Richard Hanson, Linx Client Services Director, notes:

“Where organisations work with multiple recruitment agencies in their supply chain, consistent compliance is typically only achievable through centralised processes. Without it, gaps and risks increase. An independent advisor ensures governance is enforced and compliance strategies evolve with regulations.”

Centralisation reduces risk, ensures defensible compliance strategies, and safeguards reputation.

Benefits of CaaS

• Risk management: Proactive compliance strategies prevent costly errors
• Cost-effectiveness: Outsourcing compliance management is more efficient than scaling internal teams
• Standardisation: Unified compliance processes strengthen credibility
• Customer trust: Demonstrating strong governance enhances confidence
• Future readiness: Continuous monitoring keeps you aligned with regulatory changes

Final thoughts

Compliance as a Service is no longer optional – it is a proactive strategy for reducing risk, controlling compliance costs, and maintaining governance at scale.

The post Compliance as a Service: What it is and when organisations need it appeared first on Linx.

What’s changing with Right To Work checks?

Moving forward, the scope of who falls under RTW checks will go beyond traditional direct employment to include:

• Contractors and agency workers
• Self-employed contractors and sub-contractors
• Individuals sourced via digital platforms and gig economy marketplaces
• Workers engaged under implied or verbal agreements

The Home Office draft code of practice published in June made it clear that organisations will either need to carry out checks themselves or demonstrate they have robust processes in place across their supply chain.

Why the RTW changes matter to HR leaders

Failure to comply could leave businesses exposed to financial penalties of up to £60,000 per individual. This means HR managers and senior leaders cannot afford to overlook the importance of proactive compliance management and centralised processes to ensure all recruitment suppliers are following the same onboarding checks.

Who is affected?

Any organisation engaging non-permanent talent should review its RTW processes, as these changes will impact:

• Recruitment agencies and staffing suppliers managing temporary and contingent workers
• Employers hiring contractors or consultants directly or indirectly
• Umbrella companies and intermediaries facilitating contingent labour
• Gig economy platforms and businesses using on-demand freelance marketplaces
• End clients who remain responsible for ensuring compliance across their entire supply chain

If your workforce model includes sub-contractors, outsourced arrangements, or agency workers, you will need clear governance processes in place. Ignoring these wider obligations could result in serious compliance risks and financial penalties.

What HR leaders should do now to prepare

While the full requirements to make sure your business meets the upcoming changes are detailed, key actions include:

• Reviewing existing contracts as a matter of urgency
• Understanding any potential risks in your recruitment supply chain
• Putting processes in place for additional checks if contractual substitutions occur

These changes require more than a regulatory tick-box exercise. They call for a review of governance and communication across your entire contingent workforce process.

Why independent compliance auditing can reduce risk

To maintain confidence that all recruitment suppliers are meeting the updated RTW obligations, many organisations are choosing to engage independent compliance experts. Partnering with a specialist such as Linx provides an impartial way to audit your supply chain and ensure consistent practices are being applied to every worker.

External audits offer several benefits:

• Proactive compliance management: A dedicated team of experts review existing processes and identify issues before they become regulatory breaches
• Enhanced risk management: Catching inconsistencies early reduces the chance of costly fines and reputational harm
• Expertise on hand: Compliance specialists stay ahead of regulatory changes that will impact your operation, saving you time and resource internally
• Stronger governance: Independent verification can demonstrate compliance to regulators and stakeholders

Want the complete picture on RTW changes?

We’ve created a detailed compliance update guide that explains everything HR leaders need to know about the RTW reforms, including practical recommendations to manage risk across your supply chain.

READ THE RIGHT TO WORK COMPLIANCE UPDATE

The post Right to work reform: what HR leaders need to know appeared first on Linx.

This is where Linx can support. By reviewing current agency worker arrangements, supplier processes and workforce controls, our specialist team help businesses identify potential AWR compliance gaps before they become legal, financial or reputational issues. 

Why AWR compliance becomes harder with multiple agency suppliers  

The Agency Workers Regulations (AWR) give temporary workers the right to equal treatment in certain areas after completing a 12-week qualifying period in the same role. While the legislation itself is relatively straightforward, managing compliance across large numbers of agency workers is far more challenging. 

Many organisations rely on several recruitment providers to meet workforce demands. While this approach can improve access to the right skills, it can also create complications for recruitment supplier management and agency workforce compliance. Without effective oversight, organisations can face compliance risks, inconsistent worker treatment and a lack of visibility across their workforce supply chain. 

Each supplier may operate: 

• Different recruitment systems 

• Different compliance processes to manage Day 1 and After week 12 entitlements 

• Different assignment tracking methods 

• Different approaches to data quality and reporting 

The result is often fragmented information, making it difficult to maintain consistent workforce supply chain compliance across the entire temporary workforce without central oversight. 

Key workforce data needed for AWR compliance  

Maintaining effective workforce governance requires more than simply knowing when a worker started an assignment. Organisations need access to accurate and up-to-date information across several areas. 

Comparator information 

Businesses must be able to identify appropriate comparable employees to determine whether agency workers are receiving equal treatment where required under AWR. 

Job role information 

Clear role definitions help ensure workers are classified correctly and assessed against the appropriate comparator group. 

Pay structures 

Accurate information about pay rates and remuneration arrangements is essential when equal treatment provisions apply. 

Working conditions 

Organisations should maintain records relating to working hours, annual leave entitlements and other relevant working conditions. 

Assignment records 

Comprehensive assignment histories help demonstrate compliance and support ongoing compliance assurance activities. 

When this information is spread across multiple suppliers, maintaining visibility can become extremely difficult. 

AWR compliance risks caused by fragmented supplier management 

Many compliance issues arise not because organisations intentionally fail to meet their obligations, but because information is fragmented across a complex recruitment supply chain. 

Common risks include: 

• Inconsistent worker treatment between suppliers 

• Missing or inaccurate assignment data 

• Delays in applying AWR entitlements 

• Incomplete audit trails 

• Increased exposure to non-compliance risk 

A centralised approach creates a single source of truth, enabling better decision-making and more effective supplier oversight. 

How to improve AWR compliance across multiple recruitment suppliers 

Rather than relying solely on internal teams to question suppliers, organisations can benefit from independent support to assess whether supplier responses are complete, consistent and evidence based. An advisor such as Linx can help structure the right questions, review the quality of supplier answers and identify where further scrutiny is needed. 

Businesses may know what they need assurance on, but not always how to verify supplier compliance. Linx can review supplier processes independently and challenge gaps or inconsistencies. This way supplier assurance becomes less about asking a checklist of questions and more about validating whether controls work in practice. 

• Centralised assignment tracking across all suppliers 

• Standardised compliance processes 

• Consistent worker classification methodologies 

• Accurate comparator data management 

• Regular supplier performance reviews 

• Identification of governance gaps 

• Comprehensive audit documentation 

• Recommendations for strengthening controls 

This process becomes easier to evidence when supported by independent oversight. Robust compliance is not just about having processes in place but being able to prove they are being followed. Our specialist team can assess whether processes are consistent and auditable across all suppliers. Independent review helps businesses move from assumed compliance to evidenced compliance, through transparent governance frameworks. 

further guidance on awr compliance 

In our AWR compliance guide, we break down the regulations in more detail. 

Read the AWR compliance guide

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Failures in agency worker compliance can expose organisations to significant legal, financial and reputational risks, making it a critical concern for senior leaders, finance teams, procurement professionals and workforce planners alike. 

As organisations continue to rely on flexible labour models to meet operational demands, understanding and managing AWR requirements has become an essential part of effective workforce compliance and risk management. 

Why Agency Worker Regulations matter across the business 

AWR was introduced to provide agency workers with certain rights and protections when working on temporary assignments. While HR often manages day-to-day workforce administration in coordination with external recruitment agencies, compliance responsibilities extend across multiple functions. 

Procurement teams are often responsible for selecting labour suppliers. Finance teams may approve rates and workforce budgets. Operational leaders control workforce planning and deployment. Each of these decisions can directly impact AWR compliance and the organisation’s exposure to risk. 

When compliance is treated solely as an HR issue, critical gaps can emerge in how agency workers are engaged, monitored and managed. 

Understanding AWR requirements 

The regulations provide agency workers with key rights designed to ensure fair treatment. 

Day 1 rights 

From the first day of an assignment, agency workers typically have the right to: 

• Access to communal workplace facilities and amenities, such as canteens, car parking and childcare facilities 

• Be informed of relevant internal job vacancies 

After Week 12 equal treatment rights 

After completing a 12-week qualifying period in the same role, agency workers may become entitled to equal treatment in relation to: 

• Basic pay 

• Working time provisions 

• Overtime arrangements 

• Certain bonuses and incentives directly linked to work performed 

• Annual pay rises 

This principle of AWR equal treatment is often one of the most complex aspects of compliance, particularly where organisations have multiple job grades, pay structures or assignment types. 

The business risks of non-compliance with AWR 

Organisations that fail to meet agency worker rights obligations may face a range of consequences. 

Employment tribunal claims 

Agency workers can bring claims where they believe their rights under the regulations have been breached. Even where claims are ultimately unsuccessful, investigations and legal proceedings can consume significant management time, cost and resources. 

Back pay liabilities 

Where agency worker pay parity has not been correctly applied after the qualifying period, organisations may face substantial back pay liabilities. These costs can escalate quickly across large contingent workforces. 

Compensation and financial penalties 

Tribunals can award compensation where breaches are identified. Additional financial penalties may apply in cases where deliberate structures have been used to avoid compliance with the regulations. This can include both the hiring business and the agency incurring financial penalties. 

Reputational damage 

Increasingly, organisations are being scrutinised for their employment practices. Poor governance around temporary worker compliance and labour supply chain management can damage employer reputation and undermine stakeholder confidence. 

Who is responsible for AWR compliance? 

It’s a common question organisations ask. One of the biggest misconceptions is that responsibility rests entirely with the recruitment agency. 

In reality, liability can sit with both the agency and the hiring business (known as the hirer). 

The recruitment agency often relies on information supplied by the hiring organisation to determine whether equal treatment requirements apply. If inaccurate or incomplete information is provided, compliance failures can occur despite good intentions on either side. 

This shared responsibility means effective communication and clear governance processes are essential throughout the labour supply chain. As well as a need to have transparent oversight on how a company’s appointed agencies are implementing AWR. 

Common misconceptions that increase compliance risk 

Many cases of non-compliance arise because organisations underestimate the complexity of the regulations. 

“The agency handles everything” 

While agencies play an important role, hirers remain responsible for providing accurate information regarding comparable employees, pay structures and assignment details. 

“AWR only relates to pay” 

Although pay is an important element, AWR covers a much broader range of rights and entitlements. 

“Finding a comparable employee is straightforward” 

Determining appropriate comparator information is often one of the most challenging areas of the legislation. 

Organisations may have multiple employees performing similar roles under different terms and conditions. Identifying the correct comparison and calculating equivalent treatment requires careful assessment and robust documentation. 

Why large workforces face greater exposure 

As organisations scale their temporary workforce operations, compliance complexity increases significantly. 

Potential risk factors include: 

• Multiple recruitment suppliers 

• Different pay structures across sites or departments 

• High volumes of agency workers 

• Frequent changes to assignments 

• Inconsistent workforce data 

• Limited visibility of supplier processes 

Without effective controls, businesses can quickly lose oversight of qualifying periods, comparative decisions and equal treatment obligations. 

This creates substantial temporary workforce risk and can make compliance monitoring difficult. 

Warning signs your organisation may have AWR vulnerabilities 

Businesses should periodically assess whether any of the following warning signs are present: 

• Unclear ownership of AWR responsibilities 

• Inconsistent agency worker rates across similar roles 

• No documented equal rights comparative process 

• No accurate record-keeping on role changes 

• Limited assignment tracking capabilities 

• No independent compliance audits 

• No formal AWR training for line managers 

• Poor information sharing between suppliers and hiring managers 

These indicators may suggest weaknesses in broader labour supply chain compliance and recruitment processes. 

Reducing risk through proactive compliance governance 

Reducing AWR risk starts with clear governance, accurate worker data and a consistent approach to supplier oversight. For many organisations, the challenge is not recognising that compliance matters, but having the time, visibility and independent scrutiny to check whether processes are working effectively in practice. 

This is where Linx can support. By reviewing current agency worker arrangements, supplier processes and workforce controls, our specialist team helps businesses identify potential AWR compliance gaps before they become legal, financial or reputational issues. 

Support can include: 

• Reviewing AWR processes across sites, suppliers and roles 

• Assessing how qualifying periods, pay parity and comparator information are documented 

• Auditing labour supply chain governance and supplier compliance 

• Highlighting areas of legal, financial or reputational risk 

• Helping internal teams establish clearer ownership, reporting and review processes 

With an independent and objective view of workforce practices and supplier management, Linx helps organisations strengthen compliance governance, improve confidence in temporary labour arrangements and reduce the risk of issues emerging later. 

Further guidance on AWR compliance 

In our AWR compliance guide, we break down the regulations in more detail. 

Read the AWR compliance guide

The post AWR non-compliance puts your business at risk  appeared first on Linx.

The latest report reflects on the ways colleagues, including those working within our Linx operations, have worked together to progress social value initiatives alongside their day-to-day responsibilities. As well as the continued steps the business is taking to advance important areas such as mental health and wellbeing, diversity and inclusion. 

Supporting our communities, people and planet 

The latest report is available to read now on the NRL Group website, and covers the collective progress made to give back to our communities, people and planet in 2025. 

“It’s a privilege to have colleagues within the business that share our commitment to giving back and delivering impactful change. Our 2025 social value report reflects on this progress, and the local programmes that are helping to drive our business forward in a way we can all be proud of.” 

– David Redmayne, NRL Group CEO 

What’s included in the report? 

Within the report we reflect on the many ways colleagues are working together to make a real difference, and the advances we are making as an organisation – and you can read just some of the highlights below. 

Creating a UK best workplace 

We’re proud to have achieved several accolades in 2025 thanks to direct feedback from colleagues about their experience and opinions about working both in our Linx business and the wider NRL Group. This feedback, captured anonymously through Great Place To Work®, went on to secure us positions on a number of UK Best Workplaces™ awards – including for leading the way as an employer committed to development, wellbeing and championing women. 

Match funding charity endeavours 

In 2024 a new company match funding scheme was introduced, that gives teams access to a dedicated pot of finance to increase donations made in recognition of their charity fundraising and volunteering. By matching donations raised by colleagues and teams across the NRL Group, an additional £21,167 in company donations were made to charities that are important to our people. 

Celebrating long service and investment in training 

It’s important to Linx and the NRL Group that we take great lengths to provide training and development opportunities for colleagues, helping them to advance in their roles whilst also ensuring initiatives are in place to support them inside and outside of work. 

We’re proud to see this investment reflected when it comes to celebrating long service awards, with 34% of colleagues having been with the NRL Group for more than 10 years. Within our Linx operations, the picture is even more impressive – considering we are celebrating 10 years in business in 2026, 63% of colleagues have been with us for more than 5 years having been instrumental to how our company has evolved. 

Supporting our Armed Forces 

We’re a proud advocate of the Armed Forces community and the benefits they bring to a company when looking for a new career outside of the forces. Many colleagues within Linx and the NRL Group come from a military background, and through our Employer Recognition Scheme Silver award we’re committed to supporting our Armed Forces personnel in any way we can. 

This includes our annual support for the Poppy Appeal, as Linx colleagues volunteer their time to host a stall at their local supermarket in Wigan each year. It’s the fifth year we’ve taken part in this important fundraising campaign and it’s a privilege to be able to recognise this initiative by making company donations in lieu of colleague volunteering hours. 

Progressing our carbon neutral renewal 

We understand that net zero is a collective effort, and everyone must be making proactive steps to make long-lasting changes on their environmental impact. As a business we must challenge our own carbon emissions, and we’re proud to join the NRL Group in offsetting our footprint by investing in meaningful carbon credit projects. In 2025 this included financial investment in an afforestation project in Uruguay that is helping to combat climate change whilst offsetting unavoidable emissions from our 2024 operations. This ensures we maintain our important Carbon Neutral International Standard. 

About the NRL Group 

Linx is a part of the NRL Group, with a shared mission to deliver the solutions and services organisations need to ensure they can stay ahead of the competition and drive innovation. Within our own operations we’re pleased to work side-by-side with leading companies in their sectors to manage their workforces, projects and compliance. Whilst across the wider NRL Group, businesses have delivered Recruitment, Non-Destructive Testing, Rail maintenance and Language solutions to their client base for decades. 

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This blog explores the key areas businesses can get wrong when managing the paperwork and compliance surrounding IR35. 

Understanding the IMPORTANCE of record keeping 

HMRC expects businesses to demonstrate reasonable care in their employment status assessments, so it’s crucial that businesses don’t underestimate the importance of storing evidence. If your IR35 status assessments are challenged, you’ll need to provide a comprehensive evidence pack showing how each challenged decision was made. Poor or incomplete records can significantly impact your ability to satisfy HRMC’s challenges, which could result in financial penalties and reputational damage. 

Before we consider where organisations may go wrong, let’s consider what best practice looks like when managing IR35 record keeping: 

• Centralise records: Use a secure, accessible system for storing all IR35-related documents. 

• Be thorough: Capture both contractual and practical evidence for each engagement. 

• Stay up-to-date: Regularly review and update your policies, procedures, and evidence packs. 

• Involve the right people: Ensure line managers and those with direct knowledge of the engagement are involved in status assessments. 

• Audit regularly: Periodically review your IR35 compliance processes and records to identify and address any gaps. 

IR35 specific policies and procedures 

Start by ensuring you have clearly defined and documented IR35 specific policies and procedures. These should be stored in a file location that is easy for stakeholders involved in the management of IR35 to access.  The documentation should outline how your business approaches employment status assessments, who is responsible for making decisions, and how you ensure ongoing compliance. Policies should cover: 

• The use of assessment tools (such as HMRC’s CEST) – with clear guidance on how colleagues should utilise them 

• The process for issuing and communicating Status Determination Statements (SDS) 

• How disagreements and disputes are handled 

• The frequency of ongoing monitoring and re-assessments 

Best practice: 

Having these policies in writing can help demonstrate to HMRC that your business takes IR35 compliance seriously and applies a consistent approach. It’s crucial though that this documentation is regularly reviewed and updated in line with periodical reviews HMRC make on the off-payroll working rules. This can be difficult to stay on top of, so it’s worth considering engaging an external advisor to support your business with this and highlight changes you need to make. 

Employment status assessments and supporting evidence 

Each contractor engagement must be assessed individually. Your record keeping should include: 

• Completed IR35 status assessments, with detailed reasoning for each decision 

• Supporting evidence such as written contracts, statements of work, and letters of engagement 

• Notes on the contractor’s actual working practices, gathered from line managers or direct supervisors 

Best practice: 

It’s not enough to rely on generic role-based assessments. HMRC expects to see that you’ve considered the specific circumstances of each engagement, referencing key employment status indicators such as control, substitution, and mutuality of obligation. 

It’s crucial that the people undertaking status determinations have a comprehensive understanding of HMRC’s IR35 guidelines, so seek an external training provider if needed. 

Written contracts and statements of work 

A written contract should be provided for every contractor assignment. If these are issued by agencies in your recruitment supply chain, ensure that they are clear, up-to-date, and accurately reflect the reality of the engagement. Include: 

• The scope of work (often detailed in a statement of work) 

• Payment terms 

• Any clauses on substitution, control, and termination 

Best practice: 

Letters of engagement can also help clarify the nature of the relationship. However, remember that HMRC will look beyond the contract to actual working practices, so your records should include evidence that these match what’s documented. If you’re unsure whether your working practices are a true representation of our contractual terms, then consider working with an external IR35 specialist to undertake an audit of your supply chain. 

Ongoing monitoring and re-assessments 

The IR35 status for each contractor cannot be a one-off decision that is never revisited. Circumstances can change – new projects, alterations to working practices, or contract amendments may all affect the contractor’s tax implications. Your IR35 specific policies and procedures should incorporate: 

• Regular reviews of ongoing engagements 

• Re-assessments when there are material changes 

• Documentation of all reviews and any resulting changes to status 

Best practice: 

Keeping a log of these activities shows HMRC that you are proactive in maintaining compliance and helps to demonstrate reasonable care has been taken. If you’re unsure when you need to reassess IR35 status determinations or want to develop an IR35 strategy that proactively mitigates non-compliance risks, then seek the support of an independent IR35 consultancy service. 

Records of training and internal communications 

Demonstrating that your staff understand IR35 is another key part of evidencing to HMRC that your business is taking off-payroll working seriously. Keep records of: 

• Training sessions attended by HR, procurement, and line managers 

• Internal communications about IR35 processes and updates 

• Guidance documents or checklists provided to staff 

Best practice: 

These records help prove that your business is taking reasonable care and that decisions are made by informed personnel. It’s crucial however that the information included in staff training is accurate, up-to-date and provides the right level of detail needed for each participant. Training requirements may differ depending on the stakeholder’s role, so partnering with an external provider can ensure multiple levels of training is developed around your internal processes. 

Handling disagreements and disputes 

If a contractor or deemed employer disagrees with an IR35 status determination, you must have a process for handling disputes. Keep records of: 

• The disagreement, including reasons and supporting evidence provided 

• Your review of the disagreement, referencing HRMC’s employment status indicators 

• The outcome and any changes made to the status determination 

Best practice: 

If a disagreement is raised without reasons, you are entitled to reject it, but you should document this decision. Where you plan to uphold the existing SDS, this brings into importance the need for clear record keeping that you can draw on to evidence that the determination was accurately created based on a clear understanding of working practices. If you have any concerns about whether your disagreement process will stand up to scrutiny, then seek the advice of an IR35 expert to mitigate potential risk to your business. 

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Understanding Status Determination Statements

Getting IR35 compliance right is non-negotiable for businesses engaging contractors, and the Status Determination Statement (SDS) sits at the heart of this process. The SDS is the formal document that outlines a business’s IR35 decision for each contractor, and errors here can have serious legal and financial consequences.

Key areas to get right

Below, we break down the key areas of the SDS where businesses most often go wrong, and how to avoid these pitfalls. But first, let’s recap on the guidance around Status Determination Statements:

• An individual SDS is needed for each contractor, for every assignment they undertake
• Their working practices must be taken into consideration
• Where there is a material change in their engagement, a new SDS must be created
• The end client is responsible for making the SDS
• A client-led disagreement process must be in place should contractors or any parties in the chain contest the SDS

Assigning Responsibility to the Wrong Person

The SDS must reflect the true working practices between the contractor and the business, so it’s crucial the person making the determination is well informed.

Common Mistakes:

• Delegating the SDS to HR or procurement teams who lack detailed knowledge of the engagement

Delegating the Status Determination Statement (SDS) to HR or procurement teams who lack detailed knowledge of the engagement is risky because they may not fully understand the contractor’s working practices or the specifics of the contract. This can lead to inaccurate IR35 assessments, which may not meet HMRC’s requirement for reasonable care. If the SDS is flawed, the business could become liable for unpaid tax and National Insurance.

• Failing to involve line managers or direct supervisors who understand the contractor’s role and working environment

Involving line managers or direct supervisors in IR35 status determinations is crucial because they have the clearest understanding of the contractor’s day-to-day role and working environment. Without their input, key details about control, supervision, and working practices may be missed, leading to inaccurate assessments. This increases the risk of non-compliance and a hefty increase in disagreements to manage.

Best Practice:

Ensure the person responsible for the SDS is familiar with the contractor’s work, ideally a line manager or project lead, and seek additional information from other parties if needed. This helps guarantee that the information provided is accurate and defensible if HMRC reviews the determination.

Take time to review your current IR35 approach to ensure you have the right people in place who are best positioned to make accurate determinations. If needed, call on the advice of an independent IR35 specialist to assess your existing processes and identify risks of non-compliance.

Misunderstanding or misinterpreting assessment questions

Whilst companies are not mandated to use HMRC’s CEST (Check Employment Status for Tax) tool to make Status Determination Statements, if used correctly and ethically then they will stand by determinations it produces. The tool requires users provide clear, well-informed answers to questions about control, substitution, mutuality of obligation, and other key IR35 factors. Misunderstanding these questions can lead to incorrect status decisions.

Common Mistakes:

• Guessing at answers to complex compliance questions

If the person making the determination is not clear on how to respond to certain questions, they should pause the assessment and seek further clarity before proceeding. This demonstrates why it’s important that personnel such as line managers are consulted throughout the SDS process, to ensure individual working conditions are taken into account.

• Assuming knowledge instead of seeking clarification, especially when legal or technical language is used

HMRC provide comprehensive guidance on what constitutes key areas of IR35, such as substitution, direction, and mutuality of obligation, so it’s important that the person making determinations understands these and can apply them to individual circumstances.

• Providing incomplete or vague responses that don’t align with actual working practices

If an SDS is created without fully understanding the working practices, there is a high likelihood that the contractor or another party in the engagement chain will dispute its accuracy – creating additional administration when further investigation is needed.

Best Practice:

If any aspect of the SDS is unclear, seek guidance from internal experts or external advisors. Encourage a culture where staff feel comfortable asking questions rather than making assumptions. This not only improves the accuracy of the SDS but also strengthens your compliance position.

Consider whether additional staff training is needed, and the benefits of working with an independent consultant to ensure your stakeholders remain up-to-date with changes in legislation.

Inaccurate or incomplete description of working practices

The SDS should accurately reflect how the contractor actually works, not just what is stated in the contract. HMRC will look at real working practices during an investigation.

Common Mistakes:

• Overlooking differences between what’s on paper and what happens day-to-day

To create accurate Status Determination Statements, the contractual terms that are written on paper need to reflect what happens in real life. If they vary, this puts the accuracy of determinations at risk. That’s why regular review of working practices is important, to update contractual terms where needed and ensure that there isn’t a disconnect between what’s documented in the contract and how they are expected to operate in their role.

• Failing to update the SDS when working practices or responsibilities change during the contract period

If there are material changes to how the contractor is engaged, then the SDS needs to be fully reviewed, and a new one issued if needed. This includes changes to working practices and key responsibilities. For example, if a supervisor leaves towards the end of a project and it’s deemed that the engineer can complete the outstanding work without hiring a replacement, does the business expect the engineer to fulfil any new managerial responsibilities?

• Making blanket determinations or role-based assessments based on their job discipline or title, without understanding the day-to-day working practices

HMRC advises against role-based status determination statements because they don’t take into account the individual circumstances of each contractor. This blanket approach fails to meet their legal requirement of taking reasonable care under IR35, which could make the status determination invalid. Instead, each contractor’s working practices and contract terms must be assessed individually to ensure compliance.

Best Practice:

Regularly review and update the SDS to ensure it matches the current working relationship. Collect feedback from those working directly with the contractor to capture the true nature of the engagement and schedule reviews when there is a change in management.

This is an area that businesses can fall foul of, so it’s worth considering whether you would benefit from engaging an external company to undertake an independent review of your active determinations.

Neglecting ongoing review and reassessment

Where contractors are engaged on long-term contracts, working practices can change over time, and the SDS must be updated accordingly. A one-off assessment isn’t enough to ensure compliance with the off-payroll working rules.

Common Mistakes:

• Treating the SDS as a one-time exercise

Anytime there is a material change, the SDS needs to be fully reviewed to ensure it still accurately reflects the working practices. It’s not a process that can be completed once and then filed and forgotten about, it needs to remain a live document throughout the contractor’s assignment.

• Not reviewing determinations when a contractor’s role, location, or reporting lines change

A new manager may have a different way of working, or may not be as familiar with IR35 to know when they are making significant changes that should prompt a review of the contractor’s SDS. Similarly, changes in location and responsibilities should trigger an SDS review.

• Not issuing a new SDS when the contractor starts a new assignment

Under IR35 guidelines, there is no issue with rehiring a contractor to complete a second assignment for you. provided there is no mutuality of obligation – an expectation on either side that further work will be completed. If you do decide to engage the support of a contractor on additional assignments, then you will need to complete a new SDS. Whilst their working practices may not have changed, you still need to evidence that you have undertaken an appropriate assessment and issued an accurate determination.

• Overlooking the need for periodic reassessment

Regardless of whether material changes have been brought to your attention, to remain compliant it’s important to review Status Determination Statements periodically to ensure they are still accurate.

• Mismanaging status disagreements

Contractors and parties within the engagement chain, such as the recruitment agency retaining the contractor, have the right to dispute an SDS if they feel it is not accurate. HMRC states that a client-led disagreement process must be in place, and businesses must respond within 45 days. All evidence provided must be reviewed alongside HMRC’s employment status indicators, and the original SDS must remain in place whilst the dispute is being evaluated.

Best Practice:

Implement a schedule for regular review of all SDS determinations. Reassess status whenever there are changes to contracts, working practices, or project scope.

To ensure determinations are made correctly when making reassessments, we’d recommend ensuring that your stakeholders have up-to-date knowledge on any changes to the off-payroll working rules that HMRC periodically publish. Working with an external IR35 specialist can help your business stay informed.

The post Revisiting IR35 when it goes wrong: Status Determination Statements appeared first on Linx.

A number of different people across a range of departments will likely be involved in ensuring IR35 compliance, but their training needs will widely differ, depending on their role – whether that’s making the status determinations, or passing the decision down the recruitment supply chain. 

Why IR35 training is vital 

At its core, IR35 aims to identify disguised employees, those working as external contractors but operating in the same way as an employee. The distinction is vital, as it affects how these individuals are taxed and how companies account for them. Failure to comply with IR35 can lead to severe financial penalties and reputational damage, making it a significant risk area for businesses. 

IR35 training needs to both educate participants at the level of detail and knowledge they need to perform their individual roles, as well as clearly define internal processes they are expected to follow. This variability is precisely why bespoke IR35 training is crucial. A tailored training programme can address the unique ways in which IR35 affects a business, taking into consideration its specific hiring practices and contractor engagements. 

The importance of tailored IR35 training becomes even more pronounced when we consider the varied roles within an organisation and their respective responsibilities towards IR35 compliance. 

IR35 training for Hiring Managers  

Often at the frontline of engaging contractors, they need training that equips them with the skills to identify when a role might fall inside IR35 and understand the implications of these decisions. Being able to accurately assess contract roles from the outset and use assessment tools such as HMRC’s Check Employment Status for Tax (CEST), can significantly mitigate the risk of non-compliance. 

IR35 training for Directors and senior management 

These stakeholders play a pivotal role in setting the tone and governance around IR35 compliance. Training for this group needs to underscore the financial and reputational risks associated with IR35, share relevant case law, and ensure they have the knowledge to oversee compliant practices. As well as looking at how the business can embed a culture of compliance within the organisation. 

IR35 training for HR and Talent Acquisition teams 

These departments often form the backbone of implementing IR35 compliant hiring practices. Their training should focus on the procedural aspects, including the checks and balances needed to ensure IR35 has been managed accurately ahead of onboarding. They’ll also need a clear understanding of the status disagreement process and how IR35 compliance is documented, should HMRC look for evidence that reasonable care has been taken to adhere to the legislation. 

Getting IR35 training right 

Given the complexities and evolving nature of IR35 legislation, engaging with an external IR35 specialist partner offers numerous benefits. These experts provide a depth of knowledge and experience that can be invaluable in navigating the intricacies of compliance. They can offer bespoke training, tailored specifically to the needs of your organisation and stakeholders, and ensure that your teams are up to date with the latest legislative developments. Moreover, specialist partners can provide ongoing support, helping to review contracts and working practices, thereby ensuring that your business remains compliant over time. 

Our Linx IR35 experts work with companies to identify their training needs, before creating programmes that are driven by your internal processes, combined with their in-depth knowledge of the off-payroll working legislation. They also carefully consider how that training should be delivered to best engage each audience, from online training resources to face-to-face workshops, blending the right learning techniques to ensure comprehensive training and mitigate the risk of non-compliance. 

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