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Public sector hit by off-payroll tax changes

printer Mail

The public sector has seen 27% of its skilled contractors leave their jobs as a result of the IR35 reforms which took effect in April 2017, with consequent delays or cancellations affecting 71% of projects, according to a survey conducted by contracting industry website ContractorCalculator.

The reforms move responsibility for deciding if the off-payroll rules apply, away from an individual worker’s personal service company and onto the public sector body, agency or third party paying them.

Commenting on the results of the survey, Dave Chaplin, CEO and founder of ContractorCalculator, said: ‘Now we have the evidence that shows just how damaging the changes have been.’

‘What’s more,’ he added, ‘we expect that HMRC is planning to roll out the reforms in the private sector, which just goes to show how far removed from reality the taxman is.’