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Creating a better digital future for the UK


Combining the best people with AI & automation gives us the insight and agility to solve our partners resource, technology, and commercial problems.


We support the UK Government and wider Public Sector as an SME Ecosystem Partner in collaboration with major Systems Integrators (SI) to deliver Digital, Data, and Technology (DDaT) resources and services across the UK.

SERVICES
A red arrow pointing to the right on a white background.

Creating a better digital future for UK


Combining the best people with AI & automation gives us the insight and agility to solve our partners resource, technology, and commercial problems.


We support the UK Government and wider Public Sector as an SME Ecosystem Partner in collaboration with major Systems Integrators (SI) to deliver Digital, Data, and Technology (DDaT) resources and services across the UK.

SERVICES

SME Ecosystem Partner

We specialise in SME Ecosystem Partnerships

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SME Ecosystem Partner

We specialise in SME Ecosystem Partnerships

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Resource Augmentation

Experienced Government contractors, for your resource augmentation needs

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Resource Augmentation

Experienced Government contractors, for your resource augmentation needs

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Technology Services

Outcome driven Statement of Work (SoW)

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Technology Services

Outcome driven Statement of Work (SoW)

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Public Sector Contract Jobs

Our latest Digital, Data & Technology contract opportunities

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SME Ecosystem Partner

We specialise in SME Ecosystem Partnerships

Learn More

Resource Augmentation

Experienced Government contractors, for your resource augmentation needs

Learn More

Technology Services

Outcome driven Statement of Work (SoW)

Learn More

Public Sector Contract Jobs

Our latest Digital, Data & Technology contract opportunities

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Latest Jobs

Latest Jobs

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Need help with your Public Sector Resource Augmentation, Technology Services or maybe you're looking for a new Digital, Data or Technology role?


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By Shazamme System User March 24, 2025
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.
By Laura Greenwood February 24, 2025
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
By James Burdis January 31, 2025
Prime contractors play a crucial role in delivering digital services to the UK public sector. However, fostering a robust SME ecosystem to support these efforts comes with its own set of challenges. We'll explore some of the key obstacles prime contractors encounter and offer insights into how they can navigate these complexities.  1. Balancing Compliance and Innovation Prime contractors must ensure that their SME partners comply with stringent public sector regulations while also fostering innovation. This balancing act can be challenging, as SMEs often bring innovative solutions that may not fully align with existing compliance frameworks. Prime contractors need to provide guidance and support to help SMEs navigate these regulatory requirements without stifling their creativity. 2. Managing Diverse Capabilities SMEs vary widely in terms of their capabilities, expertise, and resources. Prime contractors must manage this diversity to ensure that all partners can contribute effectively to the delivery of digital services. This involves assessing the strengths and weaknesses of each SME and providing tailored support to address any gaps. Coordinating such a diverse ecosystem requires significant effort and resources. 3. Ensuring Consistent Quality Maintaining consistent quality across a network of SME partners can be challenging. Prime contractors are responsible for the overall delivery of services and must ensure that all SMEs meet the required standards. This involves implementing robust quality assurance processes and providing ongoing training and support to SMEs. Any lapses in quality can impact the reputation of the prime contractor and the success of the project. 4. Financial Stability and Risk Management SMEs often face financial constraints that can impact their ability to deliver on contracts. Prime contractors must assess the financial stability of their SME partners and manage the associated risks. This includes providing financial support or flexible payment terms to help SMEs manage cash flow. Additionally, prime contractors need to have contingency plans in place to address any potential disruptions caused by financial instability. 5. Building Trust and Collaboration Establishing trust and fostering collaboration between prime contractors and SMEs is crucial for the success of any project. However, building these relationships can be challenging, especially when there are differences in organisational culture and working practices. Prime contractors need to invest time and effort in building strong, collaborative relationships with their SME partners, based on mutual respect and shared goals. 6. Navigating Procurement Processes The procurement processes in the public sector can be complex and time-consuming. Prime contractors must navigate these processes while also supporting their SME partners in doing the same. This involves providing guidance on bid preparation, compliance with procurement regulations, and understanding the requirements of public sector contracts. Streamlining these processes can help SMEs participate more effectively and reduce the administrative burden on prime contractors. Strategies for Overcoming Challenges Despite these challenges, prime contractors can take several steps to cultivate a successful SME ecosystem: Provide Training and Support: Offer training programmes and resources to help SMEs understand and comply with public sector regulations. This can include workshops, webinars, and one-on-one support. Foster Open Communication: Establish clear and open lines of communication with SME partners. Regular meetings, feedback sessions, and collaborative platforms can help build trust and ensure alignment. Implement Robust Quality Assurance: Develop and implement quality assurance processes to maintain consistent standards across all SME partners. This can include regular audits, performance reviews, and continuous improvement initiatives. Offer Financial Support: Provide financial support or flexible payment terms to help SMEs manage cash flow and financial stability. This can include advance payments, milestone-based payments, or access to financial advisory services. Streamline Procurement Processes: Simplify procurement processes and provide clear guidance to SMEs on how to navigate them. This can help reduce the administrative burden and increase SME participation. In conclusion, while large prime contractors face significant challenges in cultivating an SME ecosystem for delivering digital services to the UK public sector, they also have the opportunity to drive innovation and enhance service delivery. By understanding and addressing these challenges, prime contractors can build strong, collaborative relationships with their SME partners and achieve successful outcomes.
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