Posted on June 2019 By Nick Biddle
April 2020, will bring the extension of off-payroll IR35 rules into the private sector leaving huge numbers of contractors considering their future as a result.
Contractor website ContractorUK carried out some research recently, revealing that nearly half of the contractors asked are waiting to see what the initial consequences will be to the wider contracting market before deciding on whether to remain in contracting.
Other findings show sixty-five per cent of contractors are very concerned about IR35 legislation moving into the private sector, with one in five contractors currently believing they will be forced into a permanent role after the April 2020 introduction.
Nearly three quarters in contractor jobs fear significantly higher tax liabilities and eight in ten have concerns that businesses won’t understand how to implement the new rules.
The off-payroll rules mean it’ll be up to the end-client to establish whether a contractor, working under a personal service company or other intermediary, is genuinely self-employed and where they are caught by IR35, it’ll often be up to the recruitment agency to deduct and pay the worker’s tax, national insurance and employer’s NI.