Eighty eight per cent of contractors do not believe public sector bodies and agencies are able to make accurate IR35 decisions without their input, research from Qdos Contractor of The Qdos Group highlights.
Recent changes to public sector IR35 handed public sector clients and agencies the responsibility for determining employment status – a move which has seen many end engagers use HMRC’s Check Employment Status for Tax (previously the Employment Status Service) tool to set the employment status of their contractor workforce. The tool is built for the use of public sector engagers and agencies, and does not require input from the contractor.
Research into 732 UK contractors reveals that 8% of contractors do not believe accurate decisions can be made without their involvement in the process, while 12% are confident public sector clients and agencies can set make accurate determinations without their help.
Seb Maley, chief executive officer of Qdos Contractor, which has recently unveiled its IR35 solution, which involves contractors, public sector clients and agencies in the IR35 decision making process, says: “The decision to hand public sector clients and agencies the responsibility for setting contractor’s IR35 status has understandably left the vast majority of contractors feeling helpless. It is now up to largely inexperienced public sector clients and agencies to make potentially career-defining IR35 decisions. But how can one make a well-informed, accurate decision on a contractor’s employment status without consulting what is undoubtedly the most vital component, the contractor?
“Given that such vast numbers of contractors are willing to exit the public sector if they are placed inside the bracket, mistakes will be costly. Prior to reform, 85% of contractors revealed they would stop working on public sector contracts should they be placed inside IR35. Put simply, the prospect of a public sector contractor exodus is still very real. Public sector bodies, nor the public sector itself can afford to make mistakes.
“We urge public sector bodies and agencies to listen to the concerns of the contractors they engage, and begin making assessments collaboratively. To make accurate decisions on a large scale, it’s essential that contractors play their part. They are after all, the subject in question.”
Further reading on IR35
IR35 forum minutes highlight HMRC’s failures surrounding reform
