IR35. Should Contractors be Relieved? Are Recruiters Ready?
IR35 reforms repealed from April 2023. Contractors back in charge of our own destiny, right? Responsible again for IR35 status determination. Awesome news for contractors, right? Well... it should be. It probably will be. It's also great news for industry. As long as industry reacts. As long as clients DO something about this. As long as recruiters support contractors in doing something about this. Contractors who are inside IR35 in project or other engagements that should or could legitimately be outside IR35, should be speaking up. Sooner rather than later.
It's unlikely clients are going to place at the top of their priority list the IR35 status of their contractors, especially in the current economic climate. But if they don't act, they will of course face the risk of talent drain and disruption of their critical change and transformation activities as their contractors gravitate to a no doubt increasing number of outside IR35 opportunities.
As for new engagements beyond April 2023, will all clients be aware of the legislation? Will they care? Probably not. Recruiters will again hopefully support contractors in the easy justification of an outside IR35 status. But contractors have a role, here. We need to speak up. We need to make sure we fight for the returned rights when we need to. We need to gravitate to outside IR35 opportunities. We need to properly challenge unfair inside IR35 opportunities.
If you want some ammunition, 34square has an easy-to-use, guided assessment tool you can generate a status determination report from, once registered. If you're not registered, you can still have a play and get a description of any outcome, albeit you won't be able to generate the actual status conclusion report. https://www.34square.com/contract/ir35-status-assessment .
So... yes... great news for contractors. And for industry. But let's not take it for granted. Let's make sure it happens!