Study shows a growing number of opportunities outside of IR35

A new study focused on the IT sector has shown that organisations are advertising a growing number of roles as outside IR35.

The new poll of 1,846 UK contractors looked into how clients have reacted to the implementation of the IR35 reforms in the private sector since April this year.

According to the study, conducted by Qdos, around two-thirds (65 per cent) of the contractors said their clients had defined their work as being inside IR35.

However, the remaining 35 per cent said they were classified as working outside IR35 following the rule change.

Despite these initial findings, experts predict that many more contractors will find themselves working outside IR35 in future.

Businesses must use ‘reasonable care’ when determining a contractor’s IR35 status by assessing their working arrangements on an individual basis.

This assessment must be confirmed in writing to the contractor in the form of a Status Determination Statement (SDS).

Despite many organisations being aware of this, the latest research has revealed that many firms are still falling short of meeting this requirement, with 44 per cent of contractors saying they are unsure whether they have received an SDS from their client or not.

These latest findings have revealed that many private sector firms are still not up to speed on the IR35 regulations, which is creating uncertainties and difficulties for contractors.

If you need advice on IR35 and how it may affect your income, please contact our team today.

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