Contact Us: 01603 299 045 / 0161 960 0265

Budget 2018 - IR35 private sector push back

The Government reveals that the IR35 regs will be rolled out to the UK but in 2020, but only to "large and medium sized organisations"

Having first-hand experience of the impact this had in the public sector in 2017, Langham's Andy Almond says "the lack of clarity when the government rolled out IR35 into the public sector caused alot of unnecessary upset and disruption to public services." 

Andy saw this first hand in his last role as Director of a UK plc heavily exposed to this area.  Andy reveals "The clients themselves did not really get the relevant information in time as to what work was classed as inside or outside of IR35.  This saw some public sector bodies make the decision to treat all contract workers as inside the regulations.  As a result, there was a significant talent drain as candidates bailed out into private sector positions.  This caused stress and strain to those left with huge gaps in their resources to deliver key projects.  Those who couldn’t move into the private sector i.e. clinicians saw significant impact into their income, which in turn will have impacted staff morale and caused further strain."

Langham's view is that "It's nice to see the government pushing this back so they can get it right but being very vague with the language such as the regs only applying to medium or large organisations causes uncertainty.  Something we think Britain could do without at the moment."