Start preparing for IR35 now
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Earlier this year, the Government announced a postponement to the impending IR35 legislation that was set to hit the private sector in April 2020. This piece of legislation has long sparked debate within the tech industry, due to its reliance on contractors to fill the current skills gap.
Responses to the delay have largely been positive in the tech industry, as its introduction could lead to a further skills shortage in the private sector. Our Confidence Index Report reveals that 37% of all IT professionals agreed that the implementation of IR35 will significantly affect their company. One third (33%), also agreed their company was not prepared for IR35 this year.
Nonetheless, the final version of the off-payroll working rules has been confirmed and it remains in largely the same format as before the pandemic.
Not being prepared for the introduction of IR35 could have a negative impact on a company’s current operations if workers are found to be under IR35 status. Similarly, companies will need to ensure that they have thorough processes in place to effectively determine the employment status of new hires to avoid paying significant penalties.
By taking the time to become familiar with IR35 rules, companies can ensure that all workers are being employed in the correct manner and that all future hires will be too.
Get our full list of top tips to attract tech talent and come out stronger once the market recovers.