Originally written by Timothy Adler on Small Business
Nearly three-quarters of businesses are completely unaware of IR35 tax changes coming into effect this April.
From April 2020, company employers will have to decide whether freelance contractors are truly freelance or whether they are on open-ended contracts, saving employers money but which HMRC sees as tax and national insurance avoidance.
HMRC wants to crack down on freelance contractors with full-time positions in businesses, which it sees as abusing the system.
>See also: How to wind up your personal service company ahead of IR35 legislation
Seventy-one per cent of businesses surveyed by consultancy Sullivan & Stanley are unaware of the IR35 changes coming into effect on April 6 2020.
More than half of businesses surveyed (54pc) say they haven’t received enough information and 52pc say it’s contradictory or confusing.
Fewer than four in 10 firms (37pc) say they’ll have a strategy in place to cope with IR35 by the time changes kick in.
One fifth say they expect to be ready up to three months after IR35 is enforced, 32pc say four to six months after the change date, and nearly one in 10 (9pc) think it will take them anything between seven to 11 months beyond April 2020 to