A large majority of contractors believe that government bodies and agencies will be unable to make accurate choices about IR35 tax reforms without input from relevant workers, a new study has revealed.
According from new data compiled by the Qdos Group, 88 per cent of contractors believe that public sector bodies and agencies will categorically not be able to make changes to IR35 tax laws unless they consult the industry.
A survey of 732 contracting professionals in the UK also found that an increasing number of public organisations are revising “blanket” decisions about their contractor workforce and whether IR35 rules will apply to them.
Of the contractors covered by the survey, 85 per cent said they would stop working any public sector contracts should they find themselves ‘inside’ IR35 rules.
There were renewed calls from 63 per cent of respondents to also create a fairer tax system for the self-employed, while 15.5 per cent believe that creating a new post for Minister for freelancers and contractors would be beneficial.
Smaller proportions agreed with making mortgages more available and affordable for contractors (10 per cent) and incentivising pensions specifically for self-employed workers (7 per cent).
Seb Maley, Qdos’ CEO, said: “The decision to hand public sector clients and agencies the responsibility for setting contractors’ IR35 status has understandably left the vast majority of contractors feeling helpless.
“It is now up to largely inexperienced clients and agencies to make potentially career-defining IR35 decisions.”