The introduction of the IR35 in the private sector will affect thousands of the UK’s independent workforce, with AccountingWEB members reporting that these clients have been “dropping like flies” since the reforms were confirmed in the 2018 Budget.
The new reforms put the responsibility of assessing employment status on medium and large private sector clients, rather than on the intermediary - the client classed as ‘small’ is exempt from determining the employment status of its workers.
This caused many companies to pull out of the sector completely.
The prospect of today’s reforms led AccountingWEB members to declare last year that “contracting is over for the foreseeable”. But as the rollout becomes a reality, Qdos CEO Seb Maley is confident that this is not the end of contracting:
“The introduction of IR35 reform is a historic moment. It marks the culmination of years of the government chipping away at contractors, who have shown tremendous resilience and a determination to continue working this way. But while reform poses challenges to contractors and the businesses who rely on them, I am confident that contracting will survive.”
Register for free to continue reading
It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can: