The warning follows the announcement of the companies building the first-phase of the controversial HS2 and the creation of 16,000 jobs.
Recent public sector IR35 reform, which sees public sector organisations and agencies handed the responsibility for determining the employment status of contractors, has led to 85 per cent of contractors revealing they would stop working in the sector should they be placed ‘inside IR35’.
It has now been announced that £6.6bn worth of contracts have been handed to a number of companies to build the first-phase of HS2 - and this will inevitably require highly, skilled, expert contractors to fulfil some of the roles.
Seb Maley, CEO of Qdos Contractor, outlined how important it is for these companies and the agencies involved in the public sector project to make accurate IR35 decisions on a large scale.
He said: “The creation of 16,000 jobs is positive news, and first and foremost we urge the companies tasked with building the first-phase of HS2 to embrace the flexibility and expertise of the UK’s contractor workforce.
"With controversy surrounding the overall cost of HS2, it’s essential these companies use their budget wisely, and look towards the UK’s highly-skilled, highly-flexible contractor workforce.
“Given 85 per cent of contractors were once prepared to stop working in the public sector if they were found ‘inside IR35’, it’s vital that fair, accurate and ultimately, wise decisions are made around the employment status of the contractors due to start work on HS2.
“The ongoing public debate and huge investment in HS2 means there is no room for error when it comes to deciding whether a contractor sits inside or outside IR35. Inaccurate IR35 decisions would not simply risk contractor involvement in the project, it could go as far to jeopardise the very success of HS2 itself.”
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Susie Hughes © Shout99 2017