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Budget backfire: Government will be worst hit by IR35 walkout
by Susie Hughes at 11:19 15/03/17 (News on IR35)
Recent research revealed that 85 per cent of public sector contractors would leave their roles should they be caught inside IR35 after April 6 – the date on which public sector companies become responsible for determining the IR35 status of contractors.
And the majority of the 2000 UK contractors by tax specialists Qdos surveyed believe that Government departments will feel the brunt of this potential departure, reflecting growing ill-feeling.

After hopes of a last minute reprieve were dashed in the Budget, it is clear that despite widespread criticism of the policy and condemnation of the recent online status tool - the controversial move will go ahead.

Of the 2,000 contractors surveyed,

  • 42 per cent of contractors are currently engaged in public sector contracts
  • 95 per cent believe major public sector projects will suffer as the result of a contractor walkout
  • 49 per cent believe it will be Government departments that will suffer most
  • 26 per cent are concerned for the NHS
  • 12 per cent believe infrastructure projects like HS2 will run into problems
  • 13 per cent believe ‘other’ public sector projects, such as the BBC, Ministry of Defence and ‘all of them’ will be badly hit if contractors leave the public sector.

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Qdos Contractor CEO, Seb Maley, said: “Last week’s Budget did little to improve the already fractured relationship between contractors and Government. But whether it’s the NHS, HS2 or Government departments for that matter, it’s fair to say that every public sector body or project will be worse off should there be a walkout.

“The threat not just to the public sector, but UK contractors and agencies makes it all the more important that well-educated, expert decisions are made when it comes to setting IR35 status.

“Changes are a matter of weeks away, and HMRC’s tool for determining IR35 status has only just been released. Questions remain over its effectiveness and accuracy, and put simply people are still wondering what to do.”

Further information
More information about the Budget is available in the Political News section of Shout99.

More information about the IR35 changes in the public sector is available in the News on IR35 section of Shout99

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Susie Hughes © Shout99 2017

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