IR35 rule change hits contractors
Posted on 24 Sep 2013
IR35 rule change hits contractors in the public sector
New tax rules that came into effect in April have seen self-employed contractors who work primarily for public sector bodies lose up to 30% of their income. In the past, the responsibility for determining whether a contractor lay inside IR35 - and paid a higher rate in tax - lay with the contractor; now however, in the public sector it lies with the hiring company, leading to greater caution when labelling contractors. IT recruiter CW Jobs says that 71% of its clients have seen a reduction in income in the last four months, with a quarter of them reporting a reduction of close to 30%.
Source: The Daily Telegraph (02/08/2017)