Freelance workers do not trust public sector to make tax decisions

88 per cent of contractors said that government agencies need their input on IR35 regulations

Almost nine out of 10 contractors believe that the public sector cannot make accurate decisions on IR35 tax reforms without their input.

According to the Qdos Group, 88 per cent of contractors (freelance workers) believe that government bodies and agencies will not have the information necessary to make appropriate changes to the IR35 legislation.

Since the IR35 regulations were changed in April, contractors have already experienced falling income, with more than a third choosing to leave freelance work altogether.

Only 12 per cent of the 732 contractors interviewed by Qdos said that they were confident in the ability of the public sector to make appropriate decisions without their help. The survey found that a rising number of public sector organisations are revising 'blanket' decisions about their contractor workforce, and whether IR35 applies to them.

The CEO of Qdos Contractor, Seb Maley, said:

"The decision to hand public sector clients and agencies the responsibility for setting contractors' IR35 status has understandably left the vast majority of contractors feeling helpless. It is now up to largely-inexperienced public sector clients and agencies to make potentially career-defining IR35 decisions. But how can one make a well-informed, accurate decision on a contractor's employment status without consulting what is undoubtedly the most vital component: the contractor?

"Given that such vast numbers of contractors are willing to exit the public sector if they are placed inside the bracket, mistakes will be costly. Prior to reform, 85 per cent of contractors revealed they would stop working on public sector contracts should they be placed inside IR35. Put simply, the prospect of a public sector contractor exodus is still very real. [Neither] public sector bodies, nor the public sector itself, can afford to make mistakes.

"We urge public sector bodies and agencies to listen to the concerns of the contractors they engage, and begin making assessments collaboratively. To make accurate decisions on a large scale, it's essential that contractors play their part. They are after all, the subject in question."