Research released by contractor website ContractorUK this morning reveals that almost half (46%) of the contractors it surveyed are waiting to see what the initial consequences will be to the wider contracting market before deciding on whether to remain in contracting.

The survey also finds one in five current UK contractors think they will be forced to leave contracting for a permanent role post-April 2020, while 65% are very concerned about IR35 legislation coming into effect in the private sector.

Eight in 10 think businesses won’t understand how to implement the new rules effectively in the private sector, while 62% fear blanket IR35 inclusions in contracting job specifications after April 2020 will see them experience significantly higher tax liabilities.
 
The off-payroll rules make end-clients 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 rules also make the fee-payer, which will often be a recruitment agency, responsible for deducting and then paying the worker’s tax, national insurance and employer’s NI.