Skip to main content
  • Who we help

    Our range of services are tailored to suit each business type

    If you're just starting out with a new business venture or if you already have an established business, we can help.

    Our accountants are very experienced in helping new businesses grow and also using their accounting expertise to help established organisations. We also have a history of working with contractors and freelancers, helping them through the year with business accounting and advice. Review some of our case studies here

    No matter the size of your business; an individual sole trader or a limited company with employees, we have an accounting service just for you.

  • What we help with

    For all your tax and accounting affairs, we have it covered.

    Let our accountants take care of your business accounting, giving you more time to concentrate on growing and running your business.

    We provide all of the services necessary to handle the accounting and taxation requirements for your business. Our accounting services include: Bookkeeping, Payroll, Tax Returns, VAT and Accounts Production. All the services you will ever need under one roof.

    We also provide unlimited business accounting support throughout the year, you will always have access to your dedicated accountant whenever you need it.

  • Newsletter sign up

    Get the latest info from us

IR35: Delaying Private Sector Rollout Hasn’t Allayed Contractor Fears

ir35 for contractors

New research from ContractorUK has revealed that the introduction of IR35 in the private sector is still a concern for contractors and UK businesses, despite the delay of its launch until April 2020.

An increased burden

Philip Hammond announced in the Budget Statement of October last year that the rollout of IR35 into the private sector would be delayed until 2020. This was welcome news to UK businesses and contractors alike. However, research by ContractorUK reveals that the delayed rollout has done little to allay the fears of many UK contractors.

IR35 legislation was introduced to prevent ‘disguised employment’ by taxing contractors who fail to meet HMRC’s definition of self-employment at a rate similar to employees. The reasoning is that the tax advantages enjoyed by contractors are meant to balance the increased risks and responsibilities they face. Therefore those advantages shouldn’t be enjoyed by contractors who are effectively working as employees. Contractors who fall within IR35 will be liable for increased taxation and National Insurance liability.

65% of UK contractors who responded to ContractorUK’s survey said they were “very concerned” about IR35 being introduced to the private sector, a move that will affect all UK contractors not considered by HMRC to qualify for self-employed status.

Anthony Sherick, managing director of ContractorUK, said:

“Rate increases could partly compensate for the new IR35 landscape.”

“However, the increased burden of compliance and administration added to the sector is likely to be a big cost to companies and hiring contractors.”

Fears that IR35 will damage contracting and UK business

Contractors’ fears are mainly surrounding increased costs and loss of potential work resulting from the effect of the new legislation.

With regards to their finances, 65% said they fear their income will decrease following the introduction of IR35 in the private sector and 62% believe that blanket IR35 inclusions when contracting job specifications after April 2020 will result in significantly higher tax liabilities.

As for the effect on businesses and their future work prospects, 80% of the contractors surveyed believe businesses will not understand how to implement the new rules effectively in the private sector and 52% fear the legislation will result in companies being unable to deliver on key projects.

It’s also making some question their future as contractors, with one in five believing they will be forced to leave contracting for a permanent role post-April 2020, and 46% saying that they are waiting to see what the “initial consequences” will be for the wider contracting market before making a final decision whether to continue as a contractor.

“Businesses must educate themselves on IR35 legislation and ensure they do not implement a blanket IR35 inclusion without taking into consideration the impact this will have on both their business and contractors,” said Sherick.

“To do so would be to the detriment of individuals, flexible working, and productivity in the UK economy.”


Are you a contractor concerned about IR35? Do you believe the legislation is fair? Let us know what you think.

Leave a Reply

You must be logged in to post a comment.

Watch our three minute video to learn more about us

AAT Logo ACCA Logo Direct Debit Logo ICPA Logo ICO Logo