Firms 'would rather dismiss contractors than deal with IR35', research suggests

20% of UK businesses would rather dismiss their contractors than have to deal with IR35, according to research published by recruitment consultancy firm Harvey Nash.

22 Nov 2019

20% of UK businesses would rather dismiss their contractors than have to deal with IR35, according to research published by recruitment consultancy firm Harvey Nash.

The research found that 17% of contractors plan on increasing their rates in order to offset the tax burden. Meanwhile, an additional 60% of contractors stated that they have experienced increased levels of anxiety as a result of stressing over the new rules.

In 2017, HMRC introduced new off-payroll rules to the public sector, which saw some contractors' net income cut significantly. HMRC also shifted the responsibility for compliance from the individual contractor to a public body or recruitment agency.

From 6 April 2020, new tax rules will use the 2017 changes as a starting point for the extension to medium and large organisations in the private sector.

'This insight from both contractors and private sector businesses points to a perfect storm on the horizon,' said Colin Morley, Professional Services Director at Harvey Nash.

'Both sides in the contractor-client relationship will be affected. Contractors need to establish their status and take the necessary steps to secure their livelihood, while businesses need to make their IR35 strategy crystal clear to their contractors.'

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2024 Blue Spire Limited (Brighton). All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Blue Spire Limited (Brighton) are Accountants in Brighton.

Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com


Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK