Few UK contractors believe public sector clients prepared for 6th April IR35 deadline

Just 4 per cent of contractors believe public sector companies are ready for incoming IR35 changes on April the 6th.

Despite hopes for fairness when it comes to deciding IR35 status on public sector contracts, just 4 per cent of UK contractors believe their public sector clients are prepared for changes on 6th April, reveals Qdos Contractor.

As soon as next week, public sector companies will be handed responsibility for determining IR35 status – a move that will leave agencies liable.

Research into 2000 UK contractors by specialist contractor tax advisor, Qdos Contractor highlights:

– Just 4 per cent believe public sector companies are ready for incoming IR35 changes.
– 80 per cent of contractors believe companies are unprepared for public sector IR35 changes.
– 16 per cent are unsure how prepared engagers are.
– Just over half (50.29 per cent) of agencies and public sector companies have not made contact with contractors regarding the changes.
– Just under half (49.71 per cent) of agencies and clients have made contact with regards to IR35 changes.

Qdos Contractor CEO, Seb Maley, comments, ‘6th April is only a week away, and many recruitment agencies and public sector companies are still unsure about what to do when IR35 changes come into force.

‘That almost one in two contractors has not been contacted by their clients or agencies perhaps signals why confidence is low. Understandably, contractors are concerned about being wrongly caught by the new rules, with 85 per cent planning to leave their roles should they be placed inside IR35.

‘Given the sheer number of contractors and agencies concerned, not to mention projects and companies that rely heavily on the contract workforce, the situation needs clarity and a solution. It’s vital that well-informed, accurate IR35 decisions – with input from every party – are made and fast, to put minds at rest.’

Further reading on the public sector

Owen Gough, SmallBusiness UK

Owen Gough

Owen was a reporter for Bonhill Group plc writing across the Smallbusiness.co.uk and Growthbusiness.co.uk titles before moving on to be a Digital Technology reporter for the Express.co.uk.

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