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IT Contractors respond to challenge of IR35


Only 40 per cent of IT contractors in the UK will remain as contractors after the introduction of IR35, according to the results of an on-line survey of contractors published by Contractor UK. This tallies closely with another poll carried out by Shout99.

The Contractor UK survey, which ran between 4th and 31st March 2000, attracted nearly 800 responses, and the results were then compared to a similar survey conducted in December 1999.

Asked what they would do after the introduction of IR35, only 40 per cent of those surveyed said they would carry on as a contractor, with an equal number either going overseas (favouring a European destination) or diversifying into another business. Only 5 per cent thought they would take up permanent positions. 15 per cent of respondents had still to make up their minds.

To emphasise the confusion over the Inland Revenue's 'employment status' guidelines, a third each of the respondents considered themselves to be either employed or self employed, with the remaining third considering they were both.

The Shout99 poll showed that 47 per cent of respondents planned to stay in the UK, but this would include those who are staying but changing their status. The poll also gave the worrying statistic that 34 per cent of voters were currently in the UK but were waiting to emigrate.

What is clear from the surveys is that IR35 has begun to concentrate contractors' minds on the issues involved as the date of implementation of the new regime nears. Those that are undecided will need to make a decision very soon.

TrainingZONE readers can also catch up with the latest developments in IR35 from our IR35 Update Centre.


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