Recruiters claim clients unaware of off-payroll rules in private sector

Less than half of recruiters think their clients are aware that off-payroll rules are set to be extended into the private sector from next April.

Research from the Association of Professional Staffing Companies (APSCo) reveals just 39% of agencies polled believe that most of the businesses they work with are aware of the incoming changes, while only 12% said most of their clients are actively preparing for the updated legislation.

When asked if clients are expecting to pay more for contractors after the changes are implemented, just 10% said ‘yes’, 21% said ‘no’ with the remaining 69% ‘not sure’.

The new rules mean changes to IR35 legislation, which were introduced in the public sector in April 2017, will be extended to medium and large private sector companies. From this date, businesses engaging independent workers will become responsible for setting the tax status of these individuals, while the tax liability will also transfer from the contractor to the fee-paying party in the supply chain, typically the recruiter or the company that directly engages the individual.

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