61% of contractors feel they have a good understanding of IR35 changes
InterQuest Group has released its IR35 survey results. The survey asked contractors about their thoughts on IR35, what their current status is likely to be assessed as and their expectation as a result. A total of 170 contractors took part in the survey.
61.18% of the respondents felt like they had a good understanding of the IR35 changes expected to take effect in April 2020, 38.82%, however, did not.
The contractors were asked what their current status would likely to be assessed as. The results found that 20.29% of the respondents expected to be ‘inside’ IR35, 45.65% as ‘outside’ IR35 whilst 34.06% were not sure.
If they were assessed as ‘inside’ most respondents (56.52%) said they would expect to leave their assignment and find ‘outside IR35’ work elsewhere. Other respondents said they would expect to continue their assignment through a limited company but being paid after deductions (18.12%) or through an umbrella company or other PAYE arrangement (25.36%).
When asked if they would accept an equivalent permanent role if offered one by their current client, nearly half (47.10%) of the respondents answered ‘No’ whilst the other respondents said ‘Yes’ (26.81%) or ‘Don’t know’ (26.09%).
71.74% of the respondents said they would try to negotiate an increased rate to cover deductions if they were assessed as ‘inside’ IR35. The remaining respondents were unsure (15.94%) or would not negotiate (12.32%).
One final question asked the respondents to describe their main concerns around the IR35 reforms and the results were as follows:
- No concerns (21.17%)
- Less money/higher tax without perm benefits (19.71%)
- Other (18.25%)
- Blanket assessments (9.49%)
- Being classed as 'Inside' IR35 (8.03%)
- Reduction in contract workforce (7.30%)
- Uncertainty on how things will play out (6.57%)
- Lack of understanding around IR35 (5.11%)
- Lack of communication/understanding from client (4.38%)
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