A new survey from umbrella company Cool Company has revealed that the majority of contractors in the UK are concerned that there may be future revisions to current IR35 legislation. The survey found that 74 per cent believe the rules will be changed in future, with just 10 per cent believing there would not be any changes.
Of the contractors polled, 44 per cent working in the education sector and 40 per cent working in HR and recruitment said they strongly felt there was cause for concern over possible future changes.
Aside from the possible complexities that future changes could cause, one of the key concerns voiced was the potential cost of adjusting to any revisions. In the run-up to IR35 rules coming into effect in April, contractors reported spending significant amounts on specialist advice to prepare for the changes.
Contractors polled spent an average of £764 on specialist advice prior to IR35, with significant variations among different sectors. 81 per cent of contractors in the charity and voluntary sector sought advice, spending £1,081 on average.
In the law enforcement sector, 100 per cent of contractors polled sought advice, spending £885 on average. 100 per cent of contractors working in information and analysis also sought expert advice, with an average spend of £616. With just 43 per cent of respondents saying they understood the current rules, it is likely that revisions would necessitate further expenditure.
Regarding how their work has been impacted since the current rules came in, 14 per cent said they felt that they now secure less work, including 100 per cent of those polled in law enforcement, creative arts, environment and science and media and internet. 58 per cent report only seeking work classified as “outside IR35” and 54 per cent say clients won’t engage with IR35’s assessment system.
Conversely, 55 per cent said that they feel they have been able to gain slightly more work since the rules came in and 23 per cent claim they have been able to gain a lot more work.
