IR35 is an ongoing issue for many of the UK’s contractors, particularly when changes were made within the public sector – and now there are fears that the private sector could soon face the same fate.
Interestingly, previous Qdos Contractor data revealed that 81% of contractors would be deterred from working through a recruitment agency or for a client in the private sector if CEST was the only IR35 status method used.
Now, as many as 76% of the 1503 contractors surveyed by Qdos Contractor expect the government to announce a private sector reform with many anticipating it to come into force in 2019.
Seb Maley, Qdos Contractor CEO, commented, “Predictably and rather unhelpfully, the Government remains tight-lipped about its next moves with regards to IR35. And unfortunately, the longer the silence continues, the more likely it seems the private sector will face changes.
“Understandably, many contractors fear reform, and they don’t trust end engagers – or HMRC’s IR35 tool for that matter – to make accurate IR35 decisions. The upheaval following last year’s public sector changes has not been forgotten.
“However, should clients and recruitment agencies begin preparations now, potential IR35 reform is in fact manageable. But mistakes made in the public sector cannot be made again.
“We hope such obvious contractor concern sends a message to private sector engagers that unless they equip themselves for reform, they risk losing the contractors they clearly rely on.”
To find out more about contracting please contact James on 01442 795 100 or email james.trowell@dolanaccountancy.com.
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