When the public sector IR35 reforms came into force on 6 April 2017, the number of contractors working ‘outside IR35’ dropped.

We are currently seeing a similar trend in the private sector following the changes to IR35 this past April.

The fact that the two changes somewhat mirror each other is a cause for hope, as ‘outside’ contracting in the public sector has since recovered.

Given the similarities between the previous public sector reforms and the latest private sector rules, it suggests that this recovery in limited company contractor volumes will be mirrored in the private sector in the months ahead. In fact, many clients are already seeing an increase in levels of contractor opportunities as things have begun to stabilise.

A shortage of skilled labour in the UK may also force the hands of many engagers to restructure contracts outside of IR35 in future.

The trends experienced within the public sector certainly suggest a more positive future for contracting and highlight the benefit of keeping a limited company open so that you can benefit from future changes. To find out how we can help you in this area, please contact us.