Responding to confusion around IR35 changes that came into effect in the public sector on April 6th that could generate significant risks to public sector hirers, ContractorCalculator, the UK’s leading online portal for contractors and freelancers, has published an IR35 guide to help hirers better understand the IR35 reforms and their implications to ultimately secure and retain the best contractors.
The 18 page guide, Public Sector Off-payroll reform – How to retain your staff and ensure compliant working arrangements, is available to download for free at IR35Testing.co.uk and will help public sector bodies understand how they can ensure their contractors are 100% compliant. The guide is focused on helping public sector bodies secure and retain their contractors, protect ongoing projects, control costs and mitigate compliance risks.
Traditionally, contractors have been responsible for determining their own IR35 status and have been liable for any unpaid taxes and penalties if HMRC investigated them and decided that the legislation applied. Since April 6th, in the public sector, the compliance burden and potential liability for unpaid tax has shifted up the supply chain.
Dave Chaplin, CEO and founder of ContractorCalculator commented:
“We have seen risk-averse public sector organisations and agencies adopt a default position that all contractors are inside IR35, making it far less commerically attractive for a contractor to consider working for them. This approach is leaving them open to litigation for not taking reasonable care as the legislation states, and also means that they significantly reduce their potential talent pool by refusing to engage contractors who are genuinely outside IR35. Agencies are reporting that they are struggling to fill posititions because contractors are closing the door on the public sector.
“The public sector relies heavily on hiring contractors and freelancers on an ‘as needs’ basis and those adopting blanket rules are suffering the consequences as contractors refuse to work for them. This free IR35 guide helps public sector hirers follow correct compliance procedures and enables them to secure and retain the contractors they need whilst complying with the new reforms.”