Qdos Contractor’s CEO, Seb Maley, explains that while most of the agencies remain unprepared, there are a few of them that have adopted a forward-thinking approach for the IR35 changes that are going to be implemented in 2020.
Around 92 percent contractors revealed the fact that they were not informed by their end-client or recruitments agencies about how to work around with the changes of the Intermediaries legislation. As hardly a year remains before the role to determine the IR35 status is shifted to the end client, along with the involvement of the agency, contractors need surety. They have to be reassured that after April 2020, they are not going to be “automatically” placed into IR35 by their respective clients.
Since the public sector has already dealt a wide range of issues pertaining to the IR35 changes, contractors have to become more and more serious regarding the reforms’ extension. The end-clients and recruitment agencies can do well in communicating properly with those independent works that make use of PSCs. This can help them immensely after contractors are imbued with a renewed sense of hope that their IR35 status is going to be processed justly.
However, if appropriate fairness is not applied in this regard, leading contractors to think that they were unjustly pushed in the IR35’s scope, most of the contractors are going to resist and oppose such outcomes. Almost 8 in 10 contractor companies have unveiled that if such a situation occurs, they are not going to back down without a fight.
Since only a handful of contractors had discussions with their agencies or clients, naturally they are not much confident regarding the preparation of the IR35 reform by the private sector. Among them, merely 14 percent of them placed their confidence in their agency and client for correctly evaluating the IR35 assessments after the rules are changed. More than 50 percent don’t believe that their agencies and client are in a state in which they can fairly assess the IR35 assessments. The remaining one-third remains uncertain about their future.
However, some businesses are currently preparing for these changes and may have gone ahead of others. Maley believes that despite the popular opinion, he believes that at the right time, the private sector will be fully prepared with the management of this reform. Still, he believes that the medium and large companies need some convincing so they can take the IR35 reform more seriously.