IT contractors are opting out of the Employment Agency Regulations which came into force in April, according to a survey by the accountancy company giant group, which found that 97% of its contractors had opted out. “Most seem to think these regulations are entirely inappropriate to their situation,” said giant’s managing director Matthew Brown.

Opting out may also help to stop contractors getting caught by IR35, according to Barry Roback, chief executive of JSA Group.

“Contractors should resist the temptation to work under contracts that defend their ‘employment’ rights. They are increasingly having to justify themselves to the Inland Revenue and they should use every device to shore up their defences.”