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More IT contractors choosing to step away from public sector


New research has revealed that a high percentage of IT contractors are choosing to carry out work in the private sector instead of the public.

With changes to IR35 rules meaning that IT contractors in the public sector are now being taxed like employees, more and more self-employed workers are turning to the private sector for their contracts.

According to the research from CW Jobs, as many as 71% of the 1,000 IT contractors surveyed said their take home pay had decreased because of IR35 changes – 29% experienced an 11-20% reduction in income and 27% a 21-30% decrease.

The public sector is now facing issues with regards to skills shortages as project delivery will be impacted negatively, which could potentially result in further opportunities for umbrella company contractors working within the IT sector.

Dominic Harvey, director of CW Jobs, commented on the findings, “The IR35 has clearly had a huge impact and it is really worrying to see IT contractors leave the public sector in their droves. We are now facing a perfect storm of a brain drain from the public sector, questions over future project delivery, and an increase in fees from those contractors choosing to stay put: all are a real cause for concern.”

Daniele Cantello is an Employee Liaison Officer for ContractorUmbrella Ltd, one of the UK’s Most Respected Umbrella Companies. Learn more about Daniele on Google.