Later this week, public sector companies will be handed responsibility for determining IR35 status – a move that will leave agencies liable.
Research into 2000 UK contractors by contractor tax advisor, Qdos Contractor highlighted:
- Just four per cent believe public sector companies are ready for incoming IR35 changes.
- 80 per cent of contractors believe public sector companies are unprepared for public sector IR35 changes.
- 16 per cent are unsure how prepared public sector engagers are.
- Just over half of agencies and public sector companies have not made contact with contractors regarding the changes.
- Just under half of agencies and public sector clients have made contact with regards to IR35 changes.
Qdos Contractor CEO, Seb Maley, said: April 6 is only a few days away, and many recruitment agencies and public sector companies are still unsure about what to do when IR35 changes come into force.
“That almost one in two contractors has not been contacted by their public sector clients or agencies perhaps signals why confidence is low. Understandably, contractors are concerned about being wrongly caught by the new rules, with 85 per cent planning to leave their public sector roles should they be placed inside IR35.
“Given the sheer number of contractors and agencies concerned, not to mention projects and public sector companies that rely heavily on the contract workforce, the situation needs clarity and a solution. It’s vital that well-informed, accurate IR35 decisions - with input from every party - are made and fast, to put minds at rest.”
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