IR35 OK? (Survey results teasers 3)
Posted on 27th September 2019
If you are keeping up with our release of some of the Exec Summary headlines from our major survey of IR35 and the private sector, entitled, “How much do you know about IR35?,” you’ll know we’re going to publish the full report on our research next week but that this week we’re releasing some of the key points from the Executive Summary. As I noted yesterday, we were both surprised and unsurprised by some of the results, because although we didn’t expect contractors and employers to know everything about the roll-out of IR35 to the private sector, we did expect them to know more than they did…
The vast majority expect IR35 to increase their tax bill, with 97% of contractors and 89% of employers expecting this to happen.
Nearly half (46%) of contractors believe that their tax will increase by between 15% and 25% under IR35. Less than one third (37%) think their tax will grow by 15% or less. Employers are more pessimistic, with three-quarters (75%) believing that contractors’ tax bills will grow by between 15% and 25%. Will this lead to contractors increasing their rates? Two-thirds (67%) of employers are not planning for an increase in contractor costs after IR35 is implemented. Watch this space!
I hope that this and the previous two days blogs have whetted your appetite and that you’re looking forward to reading the full report when it’s released next week. In the meantime, if you have any questions about your status as a contractor, or about your contractors’ status if you are an employer, please do get in touch and we’ll be happy to do our best to advise you. Please note: we do also recommend that you take professional advice from an accountant and/or solicitor who specialises in tax.
Nikola Kelly, MD, Be-IT
Posted in IR35, News, Recruitment News
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