IR35 Preparation, migration & ongoing support

Quick Summary

As IR35 reforms introduced significant tax, compliance, and workforce risk for large financial institutions, BNP Paribas needed a clear, defensible approach to managing its contingent workforce without disrupting talent supply or creating ongoing administrative burden. As the bank’s Managed Service Provider, AMS was engaged to advise on IR35 readiness, assess regulatory and commercial risk, and design a sustainable operating model aligned with market best practice. Following detailed options analysis and market benchmarking, AMS supported BNP Paribas in transitioning its contractor population to an FCSA-compliant engagement model, managing contractor communications, contract reissuance, and migration at scale. The approach enabled the bank to retain the majority of its contractors, complete the transition ahead of schedule, and significantly reduce long-term IR35 exposure, a position later validated through a successful HMRC review.

At a glance

BNP Paribas is the largest French banking group and the largest bank in the Eurozone. As the bank’s Managed Service Provider, AMS was key in advising on IR35 changes and the impact that these would have on their contingent population.

AMS presented different options for managing the IR35 reforms, as well as assessing the various risks and considerations associated with each, whilst also providing a market research overview of how similar organisations were managing the complex change.

The challenge

The bank was keen to find an approach where engaging with contractors was simple, where the risk from a tax liability perspective was limited, and where the bank did not suffer any disadvantage in attracting talent compared to its competitors.

BNP Paribas consulted with AMS to understand the best way to manage IR35 changes and how best to engage with their contractors moving forward. The bank had initially considered assessing all workers on an individual basis and then running an ongoing process to manage this.

This raised concerns about the risk of an incorrect IR35 increased workload generated by having to access the current contractor population on an ongoing basis, as well as any new contractors coming into the bank.

The solution

The decision was taken not to undertake individual assessments and to only engage with contractors via FCSA registered umbrella companies.
Consequesntly, there was no increase in workload by having to assess contractors for their IR35 status throughout their engagement with BNP Paribas. AMS communicated with all contractors on behalf of the bank and reissued contracts to c.600 workers which adhered to strict governance, rules and regulations.
The majority of contractors were retained during this process.

The impact

AMS successfully managed the transition of approximately 650 contractors from their PSC/Ltd company to an FCSA registered umbrella company. The project was successfully completed ahead of schedule, with little impact to the contracted workforce.

Since completing the project, AMS has supported BNP Paribas with a review that was conducted by HMRC. HMRC have confirmed they are happy with the approach the bank has taken and have confirmed that there is no risk of the bank operating incorrectly.

About AMS

AMS powers talent strategies that deliver results, redefining a new era of talent driven by people, process, data and technology.

Learn more

Transform your hiring process

AMS offers digital innovation and responsible AI, providing agile talent acquisition solutions and talent consulting services that can scale with your business.

Case Study

IR35 Preparation, migration & ongoing support

Quick Summary

At a glance

The challenge

The solution

The impact

About AMS

Transform your hiring process

Related Case Studies

Case study

Talent Acquisition Technology Transformation

Case study

Global Data Center Hiring Transformation

Case study

Winning Together: Transforming Early Talent at NatWest Group

Case study

CWS success stories