Shell and IR35 – Update

Latest Update from Shell: Friday 14th February 2020

To Selected Suppliers of Contractors to Shell

The purpose of this communication is to provide you with an update, and to confirm final preparations for the distribution of IR35 Status Determination Statements (SDS). IR35 SDSs will now start to be issued to contractors during week commencing 17th February. Regrettably, this is slightly later than hoped and we apologise for the delay. Due to technical issues, this is slightly later than hoped and we apologise for the delay. We know that contractors and our suppliers are waiting on the outcomes of this exercise.

A summary of next steps …

• Our delivery partner – PwC – will distribute SDS’s in individual e-mails, with each mail relating to an individual IR35 assessment.
• The e-mail will be addressed to two recipients – the contractor (their Shell e-mail address) and a contact e-mail address for the you as the supplier. Where the contractor does not have a Shell e-mail address (which is the case in a small number of instances), we will intervene accordingly.
• We want to select an appropriate contact e-mail address for your company. By default, we will select an appropriate e-mail address from those that this note is addressed to at your company. We recognise this will result in a significant volume of e-mails – if you would like us to send the SDS mails to another e-mail address at your company, please let us know. To acknowledge that some amongst you have already done exactly that.

• Shell want to ensure contractors and our primary suppliers collaborate in discussion and assessment of the SDS. We want to ensure that the two participants in the supply chain to whom we have a compliance responsibility are in communication – we recognise that supply chains for contractors can be longer than we as the end-user realise. Also and together with PwC, we want to ensure the security and integrity of the information we will share.
• Therefore, the e-mail will contain the SDS as an attachment – a unique password-protected PDF file.
• We will share the passwords for the SDS’s with suppliers. We will ask contractors to liaise with you as their supplier, in order to retrieve the password. As a fallback option, Shell will hold passwords in the event that contractors cannot contact you.

On behalf of the IR35 Project Team
The IR35 project team is formed of CP, Tax, Legal and HR colleagues, working together on Shell’s response to the changes and helping our teams prepare.

*for the purpose of IR35 communications, manager is used to denote the individual who engages a contractor to perform work in their team.