Contractors believe public sector unprepared for IR35 changes
Just 4% of UK contractors think their public sector clients are prepared for new IR35 rules coming into force on 6 April.
The new rules mean that public sector end-clients will be responsible for determining whether a worker who operates through a personal service company or other intermediary is caught by IR35 or is genuinely self-employed. Where the worker is caught by IR35, the new rules will also make the fee payer, who will often be a recruitment agency, responsible for deducting and then paying the worker’s tax, National Insurance and employer’s NI.
But a survey of 2,000 UK contractors by specialist contractor tax adviser Qdos Contractor finds just 4% of UK contractors believe their public sector clients are prepared for the rule changes.
The research also shows:
- 80% of contractors think public sector companies are unprepared for public sector IR35 changes
- 16% are not sure how prepared public sector engagers are
- Just over half (50.29%) of agencies and public sector companies are yet to contact with contractors regarding the changes
- Just under half (49.71%) of agencies and public sector clients have made contact about the IR35 changes.
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