A new report has demonstrated that businesses in the UK have had to increase rates to attract contractors. The report, ‘Reassessing IR35: The unspoken opportunity for growth’, by Brookson Legal found that 86 per cent of medium to large manufacturers that engage contractors or freelancers have had to increase their rates since April 2021 when changes to the ‘off-payroll working rules’, or IR35, were introduced for private sector businesses.
Matt Fryer, Head of Legal Services at Brookson Legal, commented: “For businesses that rely on the contractor workforce to deliver projects on time and to budget, access to a talented flexible workforce is vital to growth.”
Fryer added: “With job vacancies reaching an all-time high, presenting an attractive, compliant and competitive IR35 offer to talent is the best way to regain some control in an uncertain environment. It is also crucial to unlocking the benefits of a truly flexible workforce in the longer term. A robust and evolving IR35 solution will not only help companies recover and grow in the wake of the pandemic, it will ensure they are more agile and able to scale their workforce up and down to meet project needs.”
The report, which is based on responses from 500 senior decision-makers with responsibility for IR35 assessments shows that 77 per cent of companies polled are finding hiring flexible workers more challenging, while 88 per cent are planning to extend their use of contractors over the coming year and a half, as businesses continue to grow post-pandemic.
The report comes six months after the changes were made to the off-payroll working rules in the private sector. The report explores the ways that having a strong IR35 solution can help businesses to reduce costs, increase the visibility of the contingent workforce and become more agile.
