case study RPO IR35 implementation and management


Our client operated with a high volume of contractors across a range of roles and were contracted and managed directly through Star OUTiCO as their RPO / contingent Recruitment partner.

  • September 2019: 63% of the contractors were operating as Limited Company Contractors (LCCs)
  • New IR35 legislation (April 2020) to ensure contractors pay the same Tax and National Insurance contributions as an equivalent employee
  • IR35 changes for private sector contractors transfer responsibility from contractors to large and medium companies to assess IR35 determinations
  • Increased workload, responsibility, and financial risk to end users of contract workforce
  • Lack of clarity around impending legislation across the UK a major concern for the client – concern that they might lose talent and skills of LCCs in scope of new legislation


Strategy for IR35 to be rolled out across the business in readiness for the changes:

  • Conducted due diligence looking at the HMRC CEST tool and guidelines for implementing a compliant IR35 process
  • Explored the HMRC CEST tool and four outsourced companies that had already dealt with IR35 changes in the public sector
  • Identified a provider who had a compliant, robust and tried and tested system for evaluating and recording status determinations
  • Partnering with this outsourced organisation gave the client piece of mind and indemnity insurance if challenged by HMRC
  • Presented strategy to the HR team and had agreement that we would commence with an implementation plan with a phased approach within agreed timelines: resulted in several Hiring Manager and Contractor workshops within the UK & USA to educate and communicate the process and timelines
  • Presented live data to HR teams weekly and several contractors deemed as INSIDE IR35 were converted across to a PAYE contracts
  • LCCs deemed as OUTSIDE IR35 allowed to continue on their current contracts
  • Contractors that decided to leave due to IR35 implications were back filled by PAYE contractors


  • 63% LCCs in Sept 2019 moved to 26% LCCs by 1st April 2020
  • £300k of savings made to the end client from changing from LCC to PAYE contractors
  • New policies and procedures created for all future recruitment and engagement
  • Managed and maintained by Star OUTiCO on behalf of our client
  • Compliant and ethical approach to IR35 across the business: client commented on the hard work and outstanding delivery – they feel this was a highly successful project, designed and delivered by Star OUTiCO

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