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)