IR35 and employment law are complex. So complicated that HMRC status inspectors, employment lawyers and tribunal judges often find their decisions subject to appeal.
That’s why we created our IR35 Shield virtual lawyer. Our virtual lawyer is the latest highly skilled member of your legal team. Powered by a unique combination of artificial intelligence (AI) using self-learning, our virtual lawyer can achieve in seconds what a skilled employment lawyer takes a year to complete.
But our virtual lawyer doesn’t work in isolation. It’s better when part of a team. When integrated, the AI alongside skilled lawyers and accountants are an unbeatable combination.
So, read on, and find out why AI makes IR35 Shield your most effective IR35 compliance solution.
How does it work? Our virtual lawyers artificial intelligence (AI) works exactly like a human by using Nolan’s framework in Hall v Lorimer, one of the seminal employment status cases. Only better, and faster.
Putting the pieces together, standing back, evaluating the whole - that's exactly what our virtual lawyer is designed to do.
In order to decide whether a person carries on business on his own account it is necessary to consider many different aspects of that person's work activity.
This is not a mechanical exercise of running through items on a check list to see whether they are present in, or absent from, a given situation.
The object of the exercise is to paint a picture from the accumulation of detail.
The overall effect can only be appreciated by standing back from the detailed picture, viewing it from a distance and only then making an informed, considered, qualitative
appreciation of the whole.
It is a matter of evaluation of the overall effect of the detail, which is not necessarily the same as the sum total of the individual details.
Not all details are of equal weight or importance in any given situation. The details may also vary in importance from one situation to another.
To determine if a contractor is a deemed employee and the IR35 legislation applies means evaluating multiple factors. Our virtual lawyers AI is taught to consider all these factors.
As laid down in the Court of Appeal in Hall v Lorimer shown above, and therefore how a tribunal judge will evaluate a status case, AI takes a holistic view of a contractor's working practices. Our virtual lawyer uses conditional questions to correctly capture the right information as a contractor enters their answers online, and weightings to evaluate their status. Replicating exactly how a judge, an employment lawyer, or an HMRC status inspector, works.
Adding our virtual lawyer to your team is just like having a thousand employment status experts ready for action on call when you need them, but better. Better because AI does not work in isolation. This means that you can benefit from big data insights such as benchmark and comparison data.
IR35 and legal experts rely on their experience and knowledge of hundreds of past employment law cases and tribunal rulings when examining status. Our virtual lawyer does too, but based on the analysis of thousands of examples every month. That’s much faster than any human can work - any single human expert simply cannot assimilate and interpret that amount of data.
The big data volumes enable our virtual lawyer to learn and refine status evaluation. Taking a big data approach allows it to identify trends, patterns, benchmarks and comparative data across tens of thousands of contractors in real time.
The big data insight not only enables you to better manage IR35 risk and take informed status decisions, it also gives you detailed insight. You could, for example, take preventative action where different types of contractors working in certain sectors are identified at greater risk. Or you can develop benchmarks, evaluate contractors against them and identify outliers. And much more besides.
Our virtual lawyers work is both accurate and consistent, applying IR35 rules to all contractors.
Humans are of course prone to human error, can make mistakes and can be inconsistent. All humans, including experts, make bad judgements. Not all humans learn from mistakes and, based on experiences, humans can introduce bias into the decisions taken.
Our virtual lawyer is ruthlessly efficient and applies IR35 and employment status tests consistently and accurately, every time a contractor’s test is analysed and evaluated. This means no human errors or bias is introduced to skew test results.
Our virtual lawyer continuously gathers data about different contexts, so the big data options grow over time.
Our virtual lawyer has been working hard in the background since it’s upgrade in February 2017. Since release, it has evaluated the IR35 status of over 28,500 contractors. How long would it take a team of legal experts to review that many contractors, and how much would that cost?
What our virtual lawyer has been doing recently:
Saving time and money
IR35 Shield can test thousands of contractors in a single day and generate a unique, detailed and comprehensive Status Determination Statement for each individual as well as generating a range of summary and key reasons for the determination.
An individual human status expert can only process a finite number of IR35 reviews during their lifetime. Our virtual lawyer can process the equivalent of a human expert’s lifetime work in a single day.
This means our virtual lawyer can consistently assess your entire workforce in a day, and be used to provide accurate reporting and evaluation of your firm’s risk, and also enable you to target the contractors that are more likely to have status issues.