Many UK contractors looking for overseas work due to IR35

Latest findings have revealed just how much the IR35 legislation is impacting the UK’s self-employed sector, with many now looking to work abroad.

The IPSE survey of 1,500 contractors found that 22% plan to find work overseas in response to an IR35 reform.

Another 10% said that they were no longer contracting because of the legislation and 53% admit they have walked away from a contract in the last 12 months because it was affected by IR35.

Andy Chamberlain, Director of Policy at IPSE, commented, “The prospect of more freelancers taking their services abroad is bound to raise alarm bells for firms struggling with skills shortages and competition with rivals overseas.

“But most alarming of all is government’s decision to bury its head in the sand, rather than changing course and acknowledging the damage its own rules are inflicting on British businesses.”

Andy added, “IPSE warned government for years that its plans to reform IR35 would make being in business too difficult, and that many genuine freelancers would turn their backs on contracting in the UK as a result. Today’s findings, whilst concerning, are nonetheless unsurprising.

“Freelancers and contractors are refusing to be corralled onto company payrolls. Instead, they are working with firms that respect their status as independent businesses, both at home and abroad.

“Many others, however, felt that it made more sense to retire early, or stop working altogether, rather than carry on in an increasingly unfavourable environment for self-employment, overseen by this government. This is a damning legacy for a government which has prioritised labour market participation.

“If the Chancellor is serious about fostering a thriving economy, government must rethink its approach to IR35 – it is a huge hindrance to hiring and a drag on the prospects of hundreds of thousands of our smallest businesses.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.