A Global Marketing Agency Leverages Bubty to Build IR35 Compliant Talent Engagement Processes for Entry into the UK Market
Business Challenges
New Market, New Compliance Requirements
The agency was entering the UK with their freelancer talent marketplace
Agency team did not have experience navigating the UK classification process and criteria requirements established by HMRC with the IR35 legislation
Agency managers were not familiar with the unique classification screening process in the UK.
Agency was considering an outsource solution for engagement and management of their UK-based freelancers.
Manual Processes
Manual talent engagement processes, supported by email and spreadsheets, were insufficient for handling the anticipated volume in the UK and the added complexity of IR35 process requirements.
Management Processes
Agency management was unfamiliar with and not used to the management practices that would be required to maintain IR35 compliance.
Solution Delivered
Automated Workflows
Bubty implemented a fully automated onboarding process for talent joining the agency talent pool and for those invited to consider specific open freelancer opportunities.
Comprehensive IR35 Manager Screening
Comprehensive Manager Screening for IR35 compliance was conducted during implementation for use across most freelancer engagements, reducing the need for managers to respond to compliance surveys for every new assignment.
The Bubty compliance team configured the assignment creation workflow with an automated stage to conduct IR35 manager screenings, for use where results of the Comprehensive Manager Screening for the hiring manager were not applicable.
IR35 Process Alignment
Bubty solution included automated workflows that ensured client compliance with IR35 process requirements
Manager IR35 screening
Self-employed freelancer acknowledgements and documentation uploads
Real-time generation of SDS (Statement of Determination Status) and presentation to freelancer built into assignment matching workflow.
IR35 Compliance Training for Management
The Bubty Compliance team conducted a Compliance Readiness Assessment (CRA) during implementation to identify compliance risk gaps in the agency’s current processes and management practices.
Bubty then conducted Freelancer Management Compliance training for the UK hiring managers.
Results and Impact
Compliant Access to UK Talent
Revised agency processes plus management training, supported by Bubty automated workflows, operationally prepared the agency for compliantly sourcing, engaging and managing freelancers in the UK.
Onboarding workflows were configured to support all talent engagement models indicated by IR35 testing results, enabling 100% access to desired UK talent.
Offloaded misclassification risk to Bubty.
Internal Management Case Outweighs Outsourced Solution
The streamlined Bubty solution reduced the administrative and compliance burden, helping agency decision to internally manage talent engagement, compliance and payments vs outsourcing to a third party Umbrella Company.
Savings of 5-8% of total cost to engage talent.
Offloaded misclassification risk to Bubty.
Key Success Factors
Fully Automated Experience: Agency managers are able to engage, match, manage and pay talent through automated workflows. This results in a better user experience for both agency managers and their talent.
100% Compliance: IR35 requirements, both process and classification criteria, have been configured into agency processes, ensuring 100% compliance results.
Full Transparency: With the Bubty solution, agency managers and talent gained full transparency to compliance, onboarding, engagement, invoicing, and payment processes, reducing support calls and status inquiries.
Outcome
With Bubty’s platform and service approach to designing the solution, the agency client achieved the IR35 compliant talent engagement model and management processes they were seeking and achieved greater operational efficiencies than they were originally expecting.
