IR35 – who knows what’s happening?
Posted on 2nd June 2019
It was announced in the last budget that IR35 public sector reform will be extended to the private sector, albeit only for “large and medium” firms. There were other elements of the Budget that will have an effect on contractors and freelancers (the increase in the personal allowance, a new digital services tax, fuel duty, etc.) but for IT contractors, their employers and agents, the single biggest concern isn’t the few extra pence on a bottle of wine but rather what is going to happen with IR35. At least this time, unlike when it was introduced to the public sector in 2017 with only 12 weeks’ notice, we’ve got until April 2020 to get ready. The second of two government consultations has just closed (28thMay 2019), with the results being expected towards the end of the summer. However, irrespective of the results of these “consultations” we expect the IR35 plans for the private sector to be implemented in full by HMRC come April 2020.
Be-IT has a substantial number of contractors working through our books so we clearly have a commercial interest in the subject, but, equally importantly, the changes to IR35 will have a profound impact on the entire IT sector. Given the importance of technology to all our futures, in our view it’s incumbent on government to do nothing that makes it more difficult for the sector to prosper. We have not been convinced that IR35, and especially the ways in which it will be implemented, will be beneficial for the individuals affected, the industry as a whole or, indeed, the wider economy.
With that in mind, we have commissioned a third-party researcher to conduct an independent study, investigating both contractors and employers’ knowledge of IR35 and its implications for individual contractors, their agents and the employing companies across the private sector as a whole. We shall also look briefly at the impact IR35 has had on the public sector to date. Full details of this survey and how to take part will be published at noon on Monday 3rd June. Please do take part and encourage all your friends who might be affected to do so too.
Gareth Biggerstaff, CEO, Be-IT
Posted in Recruitment News, Research
.. Back to Blog