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 highlighted that 80 per cent of contractors believe public sector companies are unprepared for public sector IR35 changes with 16 per cent being unsure how prepared public sector engagers are.
Furthermore, just over half of agencies and public sector companies have not made contact with contractors regarding the changes and just under half of agencies and public sector clients have made contact with regards to IR35 changes.
Qdos Contractor CEO, Seb Maley, commented: “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 1 in 2 contractors has not been contacted by their public sector 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 public sector roles should they be placed inside IR35.
“Given the sheer number of contractors and agencies concerned, not to mention projects and public sector 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.”