Contractor IR35 Poll Results
A contractor IR35 poll by Brookson Legal shows that most freelancers have not even discussed the new IR35 reforms with their clients. In fact a massive 83% have had no discussions on the IR35 at all with their clients. Implementation date is April 2020.
Questions on Contractor IR35 Poll
- What future do contractors have after the IR35 reforms?
- According to the contractors IR35 Poll how many have not discussed the reforms with clients?
- Will companies make the right decisions on IR35?
- How Many Contractors would leave after a blanket ban decision?
- According to the Contractor IR35 Poll how many would take a permanent job
- What effect will the IR35 reforms have on the UK economy?
What future do contractors have after the IR35 reform
All the talk recently is of major UK companies being intimidated into blanket banning contractors who operate via personal service companies.
It seemed that contracting was over as a profession.
However, it is those companies who plan to blanket ban contractors who have to get their announcements out early.
They have to give their contractors options and need to get a decision from the contractors as to whether they want to stay on in some capacity or leave.
Also, with contracts coming up for renewal they don’t want to be extending contractors which will take them past the IR35 reforms implementation date in April 2020.
Indeed, companies are picking an earlier date than this to get all contractors who are not leaving, in place with their new PAYE contracts.
According to the contractors IR35 Poll how many have not discussed the reforms with clients
However, according to the poll 83% of contractors have not even had a discussion with their client companies about what the companies will do with their contractors after April 2020.
With just 3.5 months till the IR35 reforms are implemented that’s leaving it a bit tight.
As companies need less time and effort to just IR35 test their contractors than it would for companies to issue a blanket ban policy, there is hope that this means that a lot of companies will continue to use contractors who operate via a personal services company.
Will companies make the right decisions on IR35
However, contractors are not so hopeful. Possibly because of the raft of bad news on companies issuing blanket bans, only 22% of contractors believe that their client companies will make the right decision on what to do about the IR35 reforms. There is much gloom among contractors.
So, what would contractors do if they were told by their client company that they would have to go PAYE?
How Many Contractors would leave after a blanket ban decision
According to Brookson Legal’s poll 59% would consider leaving the company. They would take with them not only their skills and experience but also the business and systems knowledge which they have picked up at the various companies that use their services.
According to the Contractor IR35 Poll how many would take a permanent job
Would many of the contractors consider a permanent job with their client company?
Some would but a sizeable number, 37%, said they would not even consider it.
More than half of those surveyed said that they believe the IR35 reforms would seriously discourage people from joining the contracting profession.
Indeed many freelancers are opting for early retirement rather than taking a huge cut in income by going PAYE. Decades of skills and experience as well as business and systems knowledge of their clients will go with them.
What effect will the IR35 reforms have on the UK economy
These IR35 reforms may well be the secret killer of the UK economy.
But few appear to notice.
And it seems that the Government have more anti-contracting measures coming up in the Queen’s Speech shortly.
God help us!
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