IR35: Derisking your workforce

With the impending IR35 changes just around the corner, many public sector organisations have already seen their contractors leave for new private sector contracts, or request rate increases to cover their additional tax liabilities.

As a result, employers are looking for alternative workforce solutions that will mitigate the impact of IR35 on their organisation, and ensure ongoing business stability. Unsurprisingly, this is happening across the entirety of the public sector, but it’s also happening in the private sector too. After all, private sector companies who work on public sector contracts may potentially fall into the scope of the changes, and so are looking for the best way to respond.

How is IR35 changing?

The upcoming changes to IR35 will shift the responsibility of ensuring individuals are paying the right tax to the ‘engager’. The Government estimates that only 10% of public sector contractors currently comply with the legislation, so this change could be a significant upheaval.