Contractors will turn to umbrella companies thanks to IR35 changes

Most recruiters anticipate umbrella company usage to soar in response to changes to IR35 in the private sector.

This is according to research from the Association of Professional Staffing Companies (APSCo), which shows 91% of agencies polled believe that an increasing number of contractors will shun personal service companies (PSCs) and turn to umbrella companies due to the new rules that come into effect next April.

When the same group were asked if they expect most of their contractors to agree to working ‘inside’ IR35 after the changes come into effect, two thirds (67%) said ‘no’.

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