Due to the UK government’s upcoming revised tax rules, 19% of contractors have said they are looking for permanent roles.
This trend is logical and makes sense.
But what does this mean for your staffing strategy?
To answer this, consider the additional information that as many as 2 out of 3 contractors have not heard from their employer about how they will respond to the imminent changes in the IR35 rules*. There could be significant impact on your business capability if around 20% of your contractor population are not fully focused on the day to day, distracted through the uncertainty, and searching for perm roles.
To offset this, recommended steps are:
#1 – Conduct an audit of your contractors.
#2 – Establish who's inside or outside the new rules.
#3 – Communicate with contractors. [perhaps this should be #1!]
#4 – Introduce an agreement policy.
#5 – Be prepared for higher costs.
#6 – Adjust your HR and payroll system.
* From April any business that uses contractors will assume all the liability if their contractors underpay tax, meaning businesses may find themselves unnecessarily exposed to risk.
Due to the UK government’s upcoming revised tax rules, 19% of contractors have said they are looking for permanent roles