IR35 in the private sector
We've been running a series of informal roundtable events to help you understand the proposed changes IR35 in the private sector will bring.
IR35 in the private sector is coming. This complicated topic has naturally caused a stir (to put it mildly) so we're here to help you understand the implications for your business and what you can be doing now to minimise any disruption.
What is IR35 in the private sector?
In April 2017, HMRC implemented new tax legislation which radically altered how public sector bodies engage with self-employed contractors. The Government believes the public sector changes have been largely a success, increasing tax revenues by an estimated £410 million in the first 10 months alone.
HMRC is now considering extending the same public sector rules to the private sector, though it is contemplating alternative options as well. HMRC has stated that while an extension of the current public sector rules is their preferred option, no final decisions have yet been made. We await the government’s response to a recent public consultation at which point we will know more about their intentions and timings.
Given the current imbalance between the public and private sector, and the huge tax gains made as a result of the 2017 changes, there is a strong likelihood that the current public sector rules will be extended to the private sector (potentially with some minor amendments). We are actively lobbying the Government to minimise the impact of such changes and encourage a realistic timescale for implementation.
What do contractors think about IR35?
Did you know: 65% of contractors would look for a new assignment if their current one was deemed inside IR35.
We carried out a survey among our contractor followers to determine their thoughts on IR35 and whether they understood the implications. The results were extremely revealing and can be viewed in our infographic.
Find out more
We've been running some roundtables with clients to talk through the implications. If you'd like to arrange such an event for your teams or just have a few questions, get in touch.
If you'd like any further information about IR35 or recruitment, please get in touch.