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Four in 10 British businesses considering phasing out contractors due to IR35 changes

Recent headlines have told their own story about how unfavorably the British contracting profession and the businesses that use independent professionals’ services look upon the reform of off-payroll working rules that will be extended to the private sector in April.

Now, even further evidence of the changes’ likely detrimental impact has emerged, with a new survey finding that many companies are considering whether they should even still use contractors as a consequence.

What did the poll discover?

As reported by AccountancyAge and other leading websites serving independent workers, more than 1,500 business owners were quizzed, with a whopping 41% of them indicating that they planned to review their processes in relation to procuring contractors, due to IR35.

The new rules – which will hold companies responsible for whether a contractor should be considered an independent professional, or instead a full-time employee, with the implications this has for the setting-up of Pay As You Earn (PAYE) and National Insurance contributions (NICs) – have already been the subject of considerable concern.

Many of those looking to contract in the UK, or already doing so, have expressed their fears that the changes could make them less employable in the eyes of many companies. Unfortunately, the findings of this widely reported poll will do little to reassure them.

21% of the firms questioned, for instance, confirmed that they had already switched to statement of work contracts (SoWs). Meanwhile, 11% of those polled said that they intended to take the more drastic action of decreasing the overall number of contractors used in their business.

Partner with the right company to lessen your payroll worries throughout 2020

Whether or not the imminent IR35 changes are influencing your own decisions on accepting or rejecting contracting opportunities in the UK, there’s no doubt that such transformations in the legislative landscape must be heeded and planned for as needed.

That’s why so many independent professionals working around the world make Link Global Management their top choice of global payroll vendor.

While, like other key players in this industry, we are greatly concerned here at Link Global Management about the impact the planned off-payroll reform could have on the firms and contractors that we serve, we will always strive to help you make the most of whatever environment you encounter as an independent worker.

Contact our professional and diligent team today by phone or email, and we will give you the advice and assistance that you require as an organization or contractor in light of changes like IR35 – much as you would expect from any responsible global payroll vendor – so that you can spend more time focusing on your core responsibilities.

 

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