Just 4% of contractors believe public sector is ready for IR35

Less than half of public sector organisations have told their contractors about the changes

A report by specialist tax advisor Qdos Contractor has revealed that only a tiny proportion of contractors think the public sector is ready for IR35, even though it's due to come into force in less than a week's time.

Just 4% of contractors working for public sector organisations think their clients will be ready, with 80% concerned they will not be adequately prepared for the huge changes coming into effect and this will leave them in limbo.

"6th April is only a week away, and many recruitment agencies and public sector companies are still unsure about what to do when IR35 changes come into force," Qdos Contractor CEO, Seb Maley, said.

The company's research added that less than half of public sector organisations had actually contacted their contractors to explain the changes taking place.

"That almost 1 in 2 contractors has not been contacted by their public sector clients or agencies perhaps signals why confidence is low," Maley added. "Understandably, contractors are concerned about being wrongly caught by the new rules, with 85% planning to leave their public sector roles should they be placed inside IR35."

Qdos Contractor questioned 2,000 public sector contractors about their experiences with their clients regarding IR35, exposing that preparation for the changes are lower than expected.

"Given the sheer number of contractors and agencies concerned, not to mention projects and public sector companies that rely heavily on the contract workforce, the situation needs clarity and a solution," Maley said. "It's vital that well-informed, accurate IR35 decisions with input from every party are made and fast, to put minds at rest."

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