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Most contractors will ‘never go employed’ despite public sector uncertainty.
by Susie Hughes at 10:29 13/02/17 (News on IR35)
Despite incoming IR35 changes to the public sector raising fears over the future of contracting, more than half of contractors will never return to employment or go employed.
The controversial rules intend to place the responsibility for a contractor's IR35 status on the client, agent or end-user. (See: Responsibility for contractors' IR35 lies with public sector clients - Shout99, Dec 16)

Research from contractor tax advisor, Qdos Contractor, suggests the majority of the UK’s independent workforce will remain exactly that; independent.

The Qdos Contractor survey, completed by 1947 UK contractors, revealed:

  • 95 per cent of contractors believe that incoming changes to IR35 to the public sector will reduce the benefits of working self-employed.
  • Despite this, at least 50 per cent of contractors will never go employed.
  • 46 per cent they would think about it.
  • Just four per cent plan to go employed.

Whilst the contracting workforce intend to maintain their independence, contractors did reveal however, that the public sector may not see the benefits:

  • 85 per cent of contractors will not continue their contracts in the public sector - opting to work in the private sector instead - should their self-employed status not remain.

Qdos Contractor CEO Seb Maley, said: “That by and large, a telling proportion of UK contractors are confident enough to say they’d never go employed is positive news, in what ultimately is a period of uncertainty for the sector.

“Understandably, contractors are feeling threatened by incoming IR35 changes, with many planning to stop working on public sector contracts should they be found caught by the new IR35 rules.

“With the right guidance and support though, the UK’s contractor workforce should be able to continue to benefit from working independently - and in the public sector - without the fear of wrongly being deemed inside IR35 by public sector clients.”

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Susie Hughes © Shout99 2017

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