The Association of Independent Professionals and the Self-Employed (IPSE) has responded to latest research concerning the IR35 legislation.
According to Qdos figures, as many as 92% of UK contractors are yet to be contacted by either their client or recruitment agency to discuss next year’s IR35 reform; only eight per cent have had communication.
Brookson Legal found that worrying, 59% of UK firms are planning to take a blanket approach to IR35 assessments when it is extended to the private sector.
Further findings from both companies show:
- 48% of UK businesses would reduce the number of contractors they hire because of the changing rules.
- 86% of contractors would challenge ‘inside IR35’ decisions made by their clients – 14% wouldn’t.
- Just 14% of contractors have faith in clients and agencies to make accurate IR35 decisions – 34% are undecided and 52% don’t think these parties can manage the changes.
Andy Chamberlain, IPSE’s Deputy Director of Policy, said, “This research demonstrates exactly how big a mountain UK business has to climb to catch up with the off-payroll rules. There is a very real risk that contracting, which is a proven driver of innovation and productivity, will be pushed into decline in the UK at the time that it is needed most.