Originally written by Anna Jordan on Small Business
New research reveals that as many as four in ten businesses (41pc) will review their strategy around contractors come April 2020 when IR35 is introduced.
The survey from bedigitaluk.com is part of ongoing study into the way that British businesses are preparing for the IR35 legislation. Off-payroll rules are being brought in to combat tax avoidance caused by workers supplying services to clients through an ‘intermediary’.
Out of the 1,500 British business owners surveyed, just under two thirds (65pc) were aware of the IR35 legislation and have a plan set to deal with the law changes. After being informed on what IR35 is, 41pc said they will look to review their strategy for procuring contractors into their businesses. Just over one in ten (11pc) said that they would take more drastic action by decreasing contractor numbers, having a potentially damaging effect on critical projects.
When asked if they’d switched to outcome-based ‘statement of work’ (SoW) contracts, only one in five businesses had done so. Though it’s not that simple – 45pc of businesses admitted to being confused around what action to take next.
Which sectors are struggling the most with IR35?
Those operating within the construction sector were