Mon, 03/02/2020 - 12:36 By Natalie
Fears around the impacts of the new IR35 rules set to apply next month has resulted in more than 40% of hirers considering abolishing the hire of PSC contractors, with various banks adding their names to the ever growing list of businesses already reaching this conclusion. Expert accountants have described the response of the companies surveyed as a “knee-jerk reaction” from businesses who aren’t prepared to take risks. John Bell, Founder and Senior Partner at licensed insolvency practitioners Clarke Bell, said “Rather than review and assess each contract, which would be a time consuming and admin intensive process, I think firms are taking the cautious approach, for fear of getting an assessment wrong, and applying a blanket approach to hiring contractors, opting to only hire PAYE staff.” The IR35 changes create a knock-on effect that will be felt by businesses as well as contractors; the implications of Brexit mean that businesses will need access to contractors in order to continue to grow. If you are looking for a solution to your software development needs outside of IR35, our experts are on hand to offer a no obligation free consultation. Click here to get in touch.
Is IR25 the end of UK contracting?