Hybrid Working: Will it work for you?
Bex Lee • November 19, 2021
​Post-lockdown, the new buzzword that has managers debating working style policies is 'Hybrid Working'. But what does it really entail? Is it really suitable for your workplace, and more importantly, your employees?
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What is 'hybrid working'?
Hybrid working is a relatively new term, coined to demonstrate different ways of working combined, including:
- Working in the office
- Flexible hours
- Remote working options
- Working from home
It's been born out of companies adjusting to the Covid pandemic and the necessity under government guidelines for business to pivot to digital working and working from home under lockdowns rules. Now as restrictions lift, companies are considering what it means to head back to the office and whether we really want to.
According to the ONS, prior to the pandemic around only 5% of UK employees worked from home and a recent report from the CIPD showed that pre-pandemic, 65% of employers did not offer remote working options at all. The report also shows that now 40% of employers expect more than half of their workforce to work regularly from home in the future.
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Do you employees want hybrid working?
The short answer is YES! Positive employee experiences are essential to productivity, reducing staff turnover, diversity and culture. According to Microsoft’s 2021 report, 73% of employees wanted flexible, remote work options, post-lockdown.
If you CAN offer options for hybrid working to your employees, whilst maintaining business goals, why wouldn't you? If you're in doubt about its need, conduct an employee survey and ask what options your employees would like.
The pandemic has created new employee expectations. It's not just about flexible working anymore, it's about individuals managing their own safety and working in a way that they feel secure and comfortable, and that also respects each others boundaries. If you have a mix of employees that have different health situations, you can't force them to conform to one set scenario. It just won't work. You should care enough about employees wellbeing to invest in hybrid working options and the associated tech to support it.
Hybrid working also helps to create better work/life balance for employees who may be suffering from health complications, are working parents or carers, and people with other stressful responsibilities outside of work.
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What are the challenges of hybrid working?
Dependant on the type of work you do and how large your teams are, there will be some challenges to offering hybrid working. Here's a few things you need to consider:
- Some of your roles may not be suitable for remote or hybrid working
- Keeping track of everyone - who is working from where and when
- Effective management - monitoring productivity, meeting deadlines
- Communication - meetings, group chats, keeping in touch, performance reviews
- Training & Development - better online or in-person?
- Wellbeing - isolation, new employee onboarding, socialising
- Tech - resources, hardware, connectivity, costs
How will hybrid working benefit your business?
One way hybrid working may benefit you as a leader is in a reduction of office space, work space rental and facilities costs. With a reduction of people in the office, you could reduce the office size, moving savings to other areas of your business.
Hybrid working can also hinder the spread of illnesses, (not just limited to Covid), and mean you have a fully functioning and healthy team. Employees suffering from a bad cold may feel well enough to work but don't want to pass germs onto their co-workers, so working from home is a great option.
However, the main benefit of introducing hybrid working is a big one. Employee happiness! We all know that happy employees are substantially more productive, making your business more profitable. Flexibility for working styles and personal needs create better work/life balance. This in-turn creates a positive working environment, stronger collaboration, employee loyalty and a reduction in staff turnover.
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How do you implement hybrid working?
1. Policies - Ask yourself whether your policies are long, or short term? Talk with all managers about what will work for their team. Will you still be able to meet customer expectations and continue performing at an optimum level?
When implementing hybrid working, it's important to outline very clear policies. Detail the working options available, specify what they mean and what they entail. Also outline what is expected from your employees and what happens if those expectations are not met. You can also offer one to one conversations for special cases. Some roles may not qualify for hybrid or remote working, so it is best to discuss this with anyone affected individually.
Once you have a policy outline in place, look at how achievable those policies are utilising your current resources. Are there any obvious holes in your plans? Do you need anything new and what are the costs involved? Ask for feedback from your employees on what they need for working outside of the office.
Give careful consideration to the contractual implications of hybrid working, as implementing a new policy can sometimes amount to a formal change to terms and conditions of employment. It is best to run your draft policy past a legal advisor. If you are welcoming people back into the office, make sure you stay up-to-date and comply with Government guidelines and conduct a health and safety risk assessment.
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2. Technology - Many stumbling blocks regarding hybrid working can be overcome by utilising technology. For example - using Zoom and Microsoft Teams, creating an intranet, updating employee communications or incentives, and managing projects in platforms such as Slack and Basecamp. Also think about new employees and how they will be onboarded. How can you make new recruits feel welcomed but also supported if they are not in an office? Make a list of your current tech and tech support, then review and source any new platforms you need.
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3. Hardware - It's important you keep on top of your hardware such as laptops, monitors, hard drives etc. Are they all fit for purpose? How will they be assigned and monitored? How often do they need to be checked and updated? Do you have a support company or IT dept. that will be able to manage this?
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4. Performance - With employees being in and out of the office, or working remotely for long periods, performance may be harder to observe and monitor. You may need to shift how you perceive good performance. For example: from employees being at their desk whenever you call, to instead looking at actual outcomes of work and meeting deadlines. Performance reviews and meetings should wherever possible be in person to maintain relationships.
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5. Wellbeing - What are the wellbeing implications for your new policies? Managers should receive training in understanding and spotting potential signs of poor wellbeing and mental health symptoms. Ongoing mental health support and information should be readily available and regularly promoted to all employees.
Respect boundaries going forward. Just because someone is now working from home and has the tech to be available at anytime, it does not mean they are now contactable 24/7. Work hours should remain fixed and non urgent contact kept to a minimum outside of those hours.
Fairness & inclusivity is also an area of wellbeing to bear in mind. During the pandemic there was a disproportionate impact on ethnic minorities and also with women being much more likely to be both furloughed and undertake childcare responsibilities. Identify areas where inequalities may have developed, or could develop in the future and set out plans to address these. You should also do your best to ensure equality of experience between employees in the office and employees at home and have plans to address any potential conflict.
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Conclusion
In a few years 'Hybrid Working' could be standard for most companies. Data from OpenSensors shows that 9 out of 10 UK workers want the option to work remotely once offices reopen. Early adopters and tech giants such as Twitter, Facebook and Google, are already offering a variety of hybrid working options.
Whilst the future remains unclear, having a choice of flexible options for hybrid working could mean the difference between success and failure for your business. We've seen throughout the pandemic, that companies who embrace hybrid or remote working, digital technology resources and ecommerce, can not only survive but actually thrive!
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We're here to help!
Hanover offer solutions to support engagement, remote interviewing and remote onboarding. You're busy helping existing employees and doing your day job, so at Hanover we manage a fast and simple process for you, including:
Candidate Engagement - Job Advertising, Interactive Job Descriptions, Content Marketing
Video Interviews - Online Video Interviews. Share, shortlist and feedback in a few clicks
Remote Onboarding - Data Insights to tailor remote onboarding to individual needs
Find out more about our recruitment solutions here!
What the Shift Really Means for Public Sector Suppliers
What a Healthy Digital Ecosystem Looks Like and Why It Matters
How the UK Public Sector is Strategically Integrating AI and Automation Across Digital Services
Hanover’s View on Why SC and BPSS Vetting Pressures Are Increasing in 2026
Find out how anover can support your DDaT capability through the DOS7 Framework
Discover how SME ecosystems can deliver real value in UK government DDaT programmes, driving innovation, better delivery, and stronger social impact.
The future of the UK Healthcare depends not just on medical excellence, but on digital capability. As the health service embraces a more integrated, data-driven, and technology-enabled model of care, the ability to procure and deploy Digital, Data and Technology (DDaT) skills has become fundamental to achieving this vision. From digital patient records and AI diagnostics to cyber-secure systems and smart analytics, these capabilities are no longer peripheral—they are core to modern, sustainable healthcare. But building this capability at scale requires more than intent. It requires a strategic framework to identify, commission, and grow the right digital skills, especially through public sector procurement. That’s where the Digital Capability Framework for Healthcare 2 (DCFH2) plays a vital role. Why DDaT Skills Are Essential for NHS Transformation The NHS is undergoing a digital transformation aimed at improving care quality, increasing operational efficiency, and reducing health inequalities. Initiatives like "What Good Looks Like", NHS Long Term Workforce Plan, and Frontline Digitisation all rely on embedding DDaT capabilities across the system. Whether deploying EPRs (electronic patient records), modernising infrastructure, or enabling data-sharing across ICSs (Integrated Care Systems), the NHS needs access to: Digital strategists and transformation leads Data scientists, analysts, and governance experts Cloud engineers, cybersecurity professionals, and developers Service designers, agile delivery managers, and digital programme specialists The Role of DCFH2 in Supporting DDaT Procurement The DCFH2 was designed to ensure the UK health Sector have a shared language and structure for identifying digital requirements. Importantly, DCFH2 also supports commissioning and procurement functions in the public sector to: Define What Good Looks Like in DDaT Skills DCFH2 outlines key digital capability domains and levels—from foundational to specialist and strategic. This enables procurement teams to specify clearer requirements in tender documents and contracts, avoiding vague or outdated job descriptions. Inform Supplier Selection and Evaluation Using DCFH2, buyers can assess supplier capabilities against a recognised national framework, ensuring that procured resources meet the digital maturity needs of the NHS. Enable Consistency Across ICSs and Programmes By aligning contracts with DCFH2, ICSs, trusts, and digital leads ensure consistency in workforce expectations—critical for interoperability and scalability. Support Value-Based Procurement DCFH2 encourages a shift from transactional procurement to value-based commissioning of digital skills, aligning spending with long-term transformation outcomes.  The importance of DDaT Ecosystem Partners The NHS doesn’t just need new systems—it needs the skills to use them effectively. Procuring DDaT skills isn’t a side task; it’s a strategic priority. Forward-thinking DCFH2 suppliers have the opportunity to utilise eco-system partners to effectively deliver DDaT skills into outcomes. Working with specialist SMEs can strengthen their contract bids and accelerate outcome delivery. As a trusted resource and technology solutions partner focused on public sector digital transformation, Hanover brings deep expertise in sourcing high-calibre DDaT professionals who understand the complexities of healthcare environments. Our ability to quickly mobilise talent across roles such as data analysts, digital programme managers, UCD specialists, and agile delivery leads makes us a valuable ecosystem partner for suppliers aiming to meet the competency standards and responsiveness required under DCFH2-aligned contracts. By leveraging our network and sector-specific insight, suppliers can enhance their capability, reduce risk, and ensure consistent delivery of outcomes in line with digital transformation goals. Find out more about Hanover’s DDaT and Technology services
Engaging with Hanover for the first time as a contractor can be an exciting yet daunting experience. Understanding the vetting and onboarding process is crucial to ensure a smooth transition and compliance with Hanover's and our Partner’s standards. This guide will walk you through the essential steps and requirements, helping you navigate the process with ease. Why Vetting is Important Vetting is a critical component of Hanover's onboarding process. It establishes a consistent and robust framework for personnel vetting and security, ensuring that all personnel working for or on behalf of Hanover meet the security requirements of Partner’s and roles. Additionally, it ensures compliance with relevant laws, regulations, standards, and contractual obligations. Required Documents for Vetting As a contractor, you will need to provide several documents to complete the vetting process. These include: Right to Work Document: Passport, Biometric Residence Permit (BRP), Birth or Adoption Certificate, Other Immigration Documents or Online Verification. Proof of Address: Documents accepted. DBS Check: Completed within the last 12 weeks; if not, a new one will need to be applied for. Copy of your current and up-to-date CV. Reference details: Covering the required time frame, provided by HR or the agency you worked through. National Insurance proof: Photo of your NI card, P45 or P60, pay slip, salary statement, or works pension statement. Client forms: These vary depending on the client and will be sent to you via Docusign. For contractors engaging via their PSC: Additional documents are required, such as the Certificate of Incorporation, Business Insurance Certificates, and Proof of Business Bank details. Umbrella contractors: Need to provide the name of the umbrella company they will be engaging through from the Hanover Umbrella PSL . The Vetting Process Timeline The vetting process is designed to be efficient and thorough. Here is a typical timeline: Notification: The Vetting Team will be notified when you have accepted your engagement. Document Request: The Vetting Team will then request the relevant documents and forms to be completed by you. If the required documents are not received by the following business day, the Vetting Team will reach out to you either by email or telephone. Document Submission: Once you have submitted your documents via email, the Vetting Team will begin to process your background checks, including applying for references. Reference Follow-up: References are followed up daily through phone calls and emails, but in some instances, the Vetting Team may need your help to obtain these. Completion: The Vetting Team will try to complete and clear your background checks within 5 working days, but this can be quicker. Engaging with Hanover as a contractor involves a thorough vetting and onboarding process designed to ensure security and compliance. By understanding the requirements and following the outlined steps, you can navigate the process smoothly and efficiently.  If you have any questions or need further assistance, the Vetting team and Hanover’s Compliance Manager are always there to help.
The Procurement Act 2023, from February 2025, introduced significant reforms aimed at enhancing public procurement processes in the UK. These changes present unique opportunities for Public Sector Prime Suppliers to collaborate with Small and Medium-sized Enterprises (SMEs), fostering a more dynamic and efficient supply chain. ​ Simplified Bidding Processes The Act introduces a 'competitive flexible' procedure, simplifying bidding and negotiation processes. This flexibility enables prime suppliers to engage SMEs more effectively, leveraging their specialized skills and innovative solutions to meet diverse public sector needs. ​ Open Commercial Frameworks By making commercial frameworks more accessible, the Act ensures that suppliers, including SMEs, are not excluded for extended periods. This openness allows prime suppliers to diversify their subcontractor base, enhancing competitiveness and resilience in project delivery. ​ Strengthened Payment Provisions The Act mandates 30-day payment terms throughout the supply chain, improving cash flow for SMEs. For prime suppliers, this ensures a stable and reliable network of subcontractors, reducing project delays and fostering stronger partnerships. ​ Enhanced Transparency with 'Find a Tender' The upgraded 'Find a Tender' or Central Digital Platform makes procurement opportunities more visible, making it easy to search at no cost and set up alerts for tenders of interest. This transparency facilitates prime suppliers in identifying and collaborating with capable SMEs, streamlining the procurement process and enhancing project outcomes. ​ Greater Oversight and Compliance The establishment of the Procurement Review Unit (PRU) provides oversight across all sectors, ensuring adherence to procurement standards. This oversight encourages fair competition and accountability, benefiting both prime suppliers and SMEs by promoting a level playing field. ​ Conclusion Embracing the reforms of the Procurement Act 2023 allows Public Sector Prime Suppliers to build robust ecosystems with SME suppliers. This collaboration not only enhances service delivery but also contributes to economic growth and innovation within the public sector.
In today's ever-evolving business landscape, understanding IR35, also known as the 'off-payroll working rules,' is crucial for both companies and contractors. This blog post will delve into the key facts, updates, and strategies related to IR35. What is IR35? IR35 was first introduced in 1999 as the 35th mandate of the year by the then Inland Revenue, now known as HMRC. The legislation was signed into law on April 6, 2000, and it applies to individuals who supply their services through an intermediary, typically a Limited Company. The primary aim of IR35 is to ensure that contractors working through their limited company, who would otherwise be considered employees if the limited company were not in place, pay employment taxes and National Insurance Contributions (NICs). This is commonly referred to as being "inside IR35." History and Background Initially, contractors were responsible for determining their IR35 status. However, with the implementation of new rules in April 2017, public sector organizations became responsible for determining the IR35 status of their contractors. This shift aimed to increase compliance and reduce tax avoidance. In April 2021, the private sector reform adjusted the responsibilities so that medium and large end clients took on the legal responsibility of determining their contractors' IR35 status. When Does IR35 Apply? IR35 applies when a contractor operates through a UK-limited company, regardless of the work location. It affects contractors engaging via their limited company with public sector clients, such as local authorities, universities, and national service organizations. And currently for medium or large private sector clients, the client must meet two of the following criteria: Have an annual turnover of at least £10.2 million Have assets of at least £5.1 million Employ at least 50 staff Where the IR35 Rules Differ The IR35 reforms that came into place in April 2021 do not apply if a private sector client is considered a small company, as they fall under the small company exemption. As of April 6, 2025, the thresholds for determining a company's size for IR35 purposes have increased. This means that more medium-sized companies will fall under the small company exemption. To fall under the small company exemption a client must meet two of the following criteria: Have an annual turnover of not more than £15m (increased from £10.2m) Have assets of not more than £7.5m (increased from £5.1m) Employ no more than 50 employees If a contractor is working for a client based entirely overseas, and the client has no presence in the UK, the IR35 reforms do not apply. In both instances, the contractor is responsible for determining their own IR35 status and paying the appropriate taxes. When IR35 was introduced into the public sector, HMRC's guidance stated that, where end clients were engaging in fully contracted-out services via a third party, the end client would not need to determine the IR35 status of workers supplied by the outsourced services provider. The service provider would need to determine the status of its own contractors. Inside vs. Outside IR35 Understanding the difference between working inside and outside IR35 is essential for contractors. Outside IR35, contractors can work as self-employed and will be paid gross. Inside IR35, contractors engage via limited companies, are employed for tax purposes only, and have PAYE and National Insurance Contributions taken from their gross pay, resulting in a net salary. Some clients opt to engage contractors through an Umbrella Company to mitigate risks, as the off-payroll working rules do not apply in such cases. The Umbrella Company employs the Contractor directly, so the off-payroll working rules do not apply as the contractor is on payroll. Determination Factors Several factors can determine a contractor's IR35 status: Supervision, Direction, and Control : Can the contractor decide when, where, and how the work is completed? Substitution : Does the contractor have the option to send someone else to deliver the work if they are unavailable? The client would need to consider if they would allow the contractor to send a substitute since real-world scenarios will be considered over and above what is stated in the contract. Mutuality of Obligation : If there is no work available, is the client obliged to find some, and is the Contractor obliged to complete the work? Financial Risk : What financial risks is the contractor undertaking to deliver the project or promote their business activities? For example: Is the contractor expected to fix any mistakes they have made at their own time and expense? Does the Contractor pay for business insurances to protect them and their business activity? Part and Parcel : Will the contractor be embedded in company life? Will they have access to staff facilities, staff social events, or receive staff benefits? Responsibilities Public sector and medium and large-sized private sector clients must decide the IR35 status of an engagement and share the status determination statement (SDS) with all parties in the supply chain. All clients must take ‘reasonable care’ when determining IR35 status. HMRC defines reasonable care as acting “in a way that would be expected of a prudent and reasonable person in the client’s position.” Clients must provide a “client-led status disagreement process,” as either the recruiter or the contractor may dispute the IR35 determination. Conclusion Understanding IR35 and its implications is essential for both contractors and companies. By staying informed about the key facts, updates, and strategies, you can navigate the complexities of IR35 and ensure compliance with the regulations. About Hanover Hanover is a hybrid IT services and staffing company helping the UK Public Sector digitise and improve public services. We operate alongside some of the worlds top Systems Integrators as an SME Ecosystem partner. Find out more about our services
What the Shift Really Means for Public Sector Suppliers
What a Healthy Digital Ecosystem Looks Like and Why It Matters
How the UK Public Sector is Strategically Integrating AI and Automation Across Digital Services
Hanover’s View on Why SC and BPSS Vetting Pressures Are Increasing in 2026
Find out how anover can support your DDaT capability through the DOS7 Framework
Discover how SME ecosystems can deliver real value in UK government DDaT programmes, driving innovation, better delivery, and stronger social impact.
The future of the UK Healthcare depends not just on medical excellence, but on digital capability. As the health service embraces a more integrated, data-driven, and technology-enabled model of care, the ability to procure and deploy Digital, Data and Technology (DDaT) skills has become fundamental to achieving this vision. From digital patient records and AI diagnostics to cyber-secure systems and smart analytics, these capabilities are no longer peripheral—they are core to modern, sustainable healthcare. But building this capability at scale requires more than intent. It requires a strategic framework to identify, commission, and grow the right digital skills, especially through public sector procurement. That’s where the Digital Capability Framework for Healthcare 2 (DCFH2) plays a vital role. Why DDaT Skills Are Essential for NHS Transformation The NHS is undergoing a digital transformation aimed at improving care quality, increasing operational efficiency, and reducing health inequalities. Initiatives like "What Good Looks Like", NHS Long Term Workforce Plan, and Frontline Digitisation all rely on embedding DDaT capabilities across the system. Whether deploying EPRs (electronic patient records), modernising infrastructure, or enabling data-sharing across ICSs (Integrated Care Systems), the NHS needs access to: Digital strategists and transformation leads Data scientists, analysts, and governance experts Cloud engineers, cybersecurity professionals, and developers Service designers, agile delivery managers, and digital programme specialists The Role of DCFH2 in Supporting DDaT Procurement The DCFH2 was designed to ensure the UK health Sector have a shared language and structure for identifying digital requirements. Importantly, DCFH2 also supports commissioning and procurement functions in the public sector to: Define What Good Looks Like in DDaT Skills DCFH2 outlines key digital capability domains and levels—from foundational to specialist and strategic. This enables procurement teams to specify clearer requirements in tender documents and contracts, avoiding vague or outdated job descriptions. Inform Supplier Selection and Evaluation Using DCFH2, buyers can assess supplier capabilities against a recognised national framework, ensuring that procured resources meet the digital maturity needs of the NHS. Enable Consistency Across ICSs and Programmes By aligning contracts with DCFH2, ICSs, trusts, and digital leads ensure consistency in workforce expectations—critical for interoperability and scalability. Support Value-Based Procurement DCFH2 encourages a shift from transactional procurement to value-based commissioning of digital skills, aligning spending with long-term transformation outcomes.  The importance of DDaT Ecosystem Partners The NHS doesn’t just need new systems—it needs the skills to use them effectively. Procuring DDaT skills isn’t a side task; it’s a strategic priority. Forward-thinking DCFH2 suppliers have the opportunity to utilise eco-system partners to effectively deliver DDaT skills into outcomes. Working with specialist SMEs can strengthen their contract bids and accelerate outcome delivery. As a trusted resource and technology solutions partner focused on public sector digital transformation, Hanover brings deep expertise in sourcing high-calibre DDaT professionals who understand the complexities of healthcare environments. Our ability to quickly mobilise talent across roles such as data analysts, digital programme managers, UCD specialists, and agile delivery leads makes us a valuable ecosystem partner for suppliers aiming to meet the competency standards and responsiveness required under DCFH2-aligned contracts. By leveraging our network and sector-specific insight, suppliers can enhance their capability, reduce risk, and ensure consistent delivery of outcomes in line with digital transformation goals. Find out more about Hanover’s DDaT and Technology services
Engaging with Hanover for the first time as a contractor can be an exciting yet daunting experience. Understanding the vetting and onboarding process is crucial to ensure a smooth transition and compliance with Hanover's and our Partner’s standards. This guide will walk you through the essential steps and requirements, helping you navigate the process with ease. Why Vetting is Important Vetting is a critical component of Hanover's onboarding process. It establishes a consistent and robust framework for personnel vetting and security, ensuring that all personnel working for or on behalf of Hanover meet the security requirements of Partner’s and roles. Additionally, it ensures compliance with relevant laws, regulations, standards, and contractual obligations. Required Documents for Vetting As a contractor, you will need to provide several documents to complete the vetting process. These include: Right to Work Document: Passport, Biometric Residence Permit (BRP), Birth or Adoption Certificate, Other Immigration Documents or Online Verification. Proof of Address: Documents accepted. DBS Check: Completed within the last 12 weeks; if not, a new one will need to be applied for. Copy of your current and up-to-date CV. Reference details: Covering the required time frame, provided by HR or the agency you worked through. National Insurance proof: Photo of your NI card, P45 or P60, pay slip, salary statement, or works pension statement. Client forms: These vary depending on the client and will be sent to you via Docusign. For contractors engaging via their PSC: Additional documents are required, such as the Certificate of Incorporation, Business Insurance Certificates, and Proof of Business Bank details. Umbrella contractors: Need to provide the name of the umbrella company they will be engaging through from the Hanover Umbrella PSL . The Vetting Process Timeline The vetting process is designed to be efficient and thorough. Here is a typical timeline: Notification: The Vetting Team will be notified when you have accepted your engagement. Document Request: The Vetting Team will then request the relevant documents and forms to be completed by you. If the required documents are not received by the following business day, the Vetting Team will reach out to you either by email or telephone. Document Submission: Once you have submitted your documents via email, the Vetting Team will begin to process your background checks, including applying for references. Reference Follow-up: References are followed up daily through phone calls and emails, but in some instances, the Vetting Team may need your help to obtain these. Completion: The Vetting Team will try to complete and clear your background checks within 5 working days, but this can be quicker. Engaging with Hanover as a contractor involves a thorough vetting and onboarding process designed to ensure security and compliance. By understanding the requirements and following the outlined steps, you can navigate the process smoothly and efficiently.  If you have any questions or need further assistance, the Vetting team and Hanover’s Compliance Manager are always there to help.
The Procurement Act 2023, from February 2025, introduced significant reforms aimed at enhancing public procurement processes in the UK. These changes present unique opportunities for Public Sector Prime Suppliers to collaborate with Small and Medium-sized Enterprises (SMEs), fostering a more dynamic and efficient supply chain. ​ Simplified Bidding Processes The Act introduces a 'competitive flexible' procedure, simplifying bidding and negotiation processes. This flexibility enables prime suppliers to engage SMEs more effectively, leveraging their specialized skills and innovative solutions to meet diverse public sector needs. ​ Open Commercial Frameworks By making commercial frameworks more accessible, the Act ensures that suppliers, including SMEs, are not excluded for extended periods. This openness allows prime suppliers to diversify their subcontractor base, enhancing competitiveness and resilience in project delivery. ​ Strengthened Payment Provisions The Act mandates 30-day payment terms throughout the supply chain, improving cash flow for SMEs. For prime suppliers, this ensures a stable and reliable network of subcontractors, reducing project delays and fostering stronger partnerships. ​ Enhanced Transparency with 'Find a Tender' The upgraded 'Find a Tender' or Central Digital Platform makes procurement opportunities more visible, making it easy to search at no cost and set up alerts for tenders of interest. This transparency facilitates prime suppliers in identifying and collaborating with capable SMEs, streamlining the procurement process and enhancing project outcomes. ​ Greater Oversight and Compliance The establishment of the Procurement Review Unit (PRU) provides oversight across all sectors, ensuring adherence to procurement standards. This oversight encourages fair competition and accountability, benefiting both prime suppliers and SMEs by promoting a level playing field. ​ Conclusion Embracing the reforms of the Procurement Act 2023 allows Public Sector Prime Suppliers to build robust ecosystems with SME suppliers. This collaboration not only enhances service delivery but also contributes to economic growth and innovation within the public sector.
In today's ever-evolving business landscape, understanding IR35, also known as the 'off-payroll working rules,' is crucial for both companies and contractors. This blog post will delve into the key facts, updates, and strategies related to IR35. What is IR35? IR35 was first introduced in 1999 as the 35th mandate of the year by the then Inland Revenue, now known as HMRC. The legislation was signed into law on April 6, 2000, and it applies to individuals who supply their services through an intermediary, typically a Limited Company. The primary aim of IR35 is to ensure that contractors working through their limited company, who would otherwise be considered employees if the limited company were not in place, pay employment taxes and National Insurance Contributions (NICs). This is commonly referred to as being "inside IR35." History and Background Initially, contractors were responsible for determining their IR35 status. However, with the implementation of new rules in April 2017, public sector organizations became responsible for determining the IR35 status of their contractors. This shift aimed to increase compliance and reduce tax avoidance. In April 2021, the private sector reform adjusted the responsibilities so that medium and large end clients took on the legal responsibility of determining their contractors' IR35 status. When Does IR35 Apply? IR35 applies when a contractor operates through a UK-limited company, regardless of the work location. It affects contractors engaging via their limited company with public sector clients, such as local authorities, universities, and national service organizations. And currently for medium or large private sector clients, the client must meet two of the following criteria: Have an annual turnover of at least £10.2 million Have assets of at least £5.1 million Employ at least 50 staff Where the IR35 Rules Differ The IR35 reforms that came into place in April 2021 do not apply if a private sector client is considered a small company, as they fall under the small company exemption. As of April 6, 2025, the thresholds for determining a company's size for IR35 purposes have increased. This means that more medium-sized companies will fall under the small company exemption. To fall under the small company exemption a client must meet two of the following criteria: Have an annual turnover of not more than £15m (increased from £10.2m) Have assets of not more than £7.5m (increased from £5.1m) Employ no more than 50 employees If a contractor is working for a client based entirely overseas, and the client has no presence in the UK, the IR35 reforms do not apply. In both instances, the contractor is responsible for determining their own IR35 status and paying the appropriate taxes. When IR35 was introduced into the public sector, HMRC's guidance stated that, where end clients were engaging in fully contracted-out services via a third party, the end client would not need to determine the IR35 status of workers supplied by the outsourced services provider. The service provider would need to determine the status of its own contractors. Inside vs. Outside IR35 Understanding the difference between working inside and outside IR35 is essential for contractors. Outside IR35, contractors can work as self-employed and will be paid gross. Inside IR35, contractors engage via limited companies, are employed for tax purposes only, and have PAYE and National Insurance Contributions taken from their gross pay, resulting in a net salary. Some clients opt to engage contractors through an Umbrella Company to mitigate risks, as the off-payroll working rules do not apply in such cases. The Umbrella Company employs the Contractor directly, so the off-payroll working rules do not apply as the contractor is on payroll. Determination Factors Several factors can determine a contractor's IR35 status: Supervision, Direction, and Control : Can the contractor decide when, where, and how the work is completed? Substitution : Does the contractor have the option to send someone else to deliver the work if they are unavailable? The client would need to consider if they would allow the contractor to send a substitute since real-world scenarios will be considered over and above what is stated in the contract. Mutuality of Obligation : If there is no work available, is the client obliged to find some, and is the Contractor obliged to complete the work? Financial Risk : What financial risks is the contractor undertaking to deliver the project or promote their business activities? For example: Is the contractor expected to fix any mistakes they have made at their own time and expense? Does the Contractor pay for business insurances to protect them and their business activity? Part and Parcel : Will the contractor be embedded in company life? Will they have access to staff facilities, staff social events, or receive staff benefits? Responsibilities Public sector and medium and large-sized private sector clients must decide the IR35 status of an engagement and share the status determination statement (SDS) with all parties in the supply chain. All clients must take ‘reasonable care’ when determining IR35 status. HMRC defines reasonable care as acting “in a way that would be expected of a prudent and reasonable person in the client’s position.” Clients must provide a “client-led status disagreement process,” as either the recruiter or the contractor may dispute the IR35 determination. Conclusion Understanding IR35 and its implications is essential for both contractors and companies. By staying informed about the key facts, updates, and strategies, you can navigate the complexities of IR35 and ensure compliance with the regulations. About Hanover Hanover is a hybrid IT services and staffing company helping the UK Public Sector digitise and improve public services. We operate alongside some of the worlds top Systems Integrators as an SME Ecosystem partner. Find out more about our services