Contractors continue to fear IR35 private sector reform

(2 minutes to read)

With recent data revealing that the majority of self-employed workers are unhappy with the IR35 CEST tool, as many as three in four contractors are convinced that the government will soon make the announcement of an IR35 private sector reform.

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.

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“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.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of ContractorUmbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, ContractorUmbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use CashPlus free of charge for the first year, saving you £69.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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