Interestingly there are two answers to this question, yes and no, and both are actually correct. Let us explain why.
Yes – It is legally possible to eliminate risk of using contractors outside IR35 for end hiring clients.

This is achieved in two steps:

1. Firstly IR35 Pro manage the IR35 process, our unique service exceeds HMRC’s requirement for ‘reasonable care’ which legally passes the IR35 risk down to the ‘fee payer’ in the supply chain.

2. Noting point 1, you must ensure the end client is therefore not the fee payer, so avoid direct hires. This is achieved by simply using an MSP, recruiter, or a 3rd party that pays the limited company contractor on behalf of the end client.

Those 2 steps eliminate the IR35 risk for end hiring clients. It doesn’t however eliminate IR35 risk completely, as it’s passed down the supply chain as described. However, IR35 is significantly ‘de-risked’ by using IR35 Pro, our team has 17 years of legal expertise, over 2,000 clients serviced, and all assessments to date have passed HMRC.

Martyn Valentine is the co-founder of IR35 Pro, he’s considered to be the most experienced Legal expert on IR35 in the UK. Martyn has dedicated 17 years of his professional career to specialising in IR35 tax law, serviced over 2,000 clients, drafted over 6,000 contracts, and successfully supported over 100 HMRC IR35 enquiries. He is considered the legal authority on IR35.

We recognise IR35 reform is an opportunity for companies to gain a competitive edge, but in doing so they must ensure their compliance is thorough and robust. IR35 Pro enables clients to safely attract and retain the very best contractor talent, whilst ensuring the cost benefits of engaging contractors outside IR35 are realised.

Our service is unique, it’s the only fully managed end-to-end service for IR35. In our direct experience with HMRC, reliance on automated SDS tools or tax loss insurance offers no protection for clients, the only way to maximize the opportunity of IR35 safely is by managing it robustly.

Our service covers more than assessments, we educate the hiring manager, draft the contracts, draft the assignment schedules and then connect each month to verify if there are material changes that require revisions or re-assessments. We store an audit trail of activity and provide first line defense for an HMRC enquiry for our clients.

All of the above is provided for a simple all inclusive fee. Nothing is payable upfront, we only charge for assignments falling outside IR35, this ensure the client always receives a positive ROI on our support.