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IR35 OK? (Survey results teasers)

IR35 OK? (Survey results teasers)

Posted on 25th September 2019

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Earlier this year, we commissioned a research project on IR35, specifically, how much do contractors and employers in the private sector know about the changes that are going to be made in April next year. Given that we’ve already been through this in 2017 with the public sector, it might have been expected that there would be a reasonable amount known about what this means for IT (and other) contractors.  It is clearly a subject which engenders a lot of interest as we had the biggest response by far of any of the Be-IT research surveys of the last three years.  

With all that in mind, I think the results of our survey will prove both interesting and, on occasions, perhaps surprising.  The full report will be issued next week, but in the meantime, we’re going to run very short blog pieces over the next few days to highlight some of the key findings…

Let’s start with some important stuff  

Fewer than 10% of contractors and none of employers surveyed were aware that sole traders are exempt from IR35.

Some 29% of contractors and 38% of employers believe that it is the contractor who is responsible for deducting PAYE (it is the final employer’s responsibility)

A substantial number (75% of employers and 41% of contractors) think that all contractors, agents or umbrella companies, regardless of size, will fall under IR35. In fact, it is only small companies as defined by the Companies Act 2006 (i.e. with two or more of the following - a turnover of £10.2M or less, £5.1M or less on its balance sheet, and those with 50 employees or fewer) that are exempt.  Medium-sized companies as defined by the Companies Act 2006 will be caught by the new legislation.  

Tune in tomorrow for some more of the headline findings - and make sure you come here on Monday for the full survey results.

Nikola Kelly, MD, Be-IT

Posted in IR35, News, Recruitment News

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