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The Impact of IR35

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The Impact of IR35

The Global Recruiter magazine recently published an article outlining the impact of IR35 on employers using contractors. Based on research by Brookson Legal, the article purports that more than 87% of employers have had to increase the rates they offer contractors and freelancers to attract talent. Blayne Cahill, Carrington West Director agrees that this seems to be the case in the highway’s sector. “We have seen an increase in rates for contractors as a result of many of them now having to work inside IR35.”

Blayne goes on to agree with other points raised in the article, including that quick access to a flexible and agile workforce is critical to organisations being able to deliver projects on time. “There has been too much dependence on HMRC's flawed CEST tool from hirers and this is slowing the process down. Delays in appointing and onboarding contractors as a result of internal confusion related to the legislation, often hinders the ability of our clients to quickly respond to an immediate need for talent.”


Across the board Carrington West has seen that many businesses not considering IR35 a serious governance issue. There is a lack of genuine understanding of what is needed to be compliant. James Fernandes, Carrington West MD says it is possible to work with the new guidelines with relative ease, adding “businesses that are actively engaging with us and the process, updating and clarifying working practices and being more flexible with their contract workforce, have been able to manage the changes effectively whilst ensuring full compliance.”


As we enter 2022, and job vacancies continue to rise, the demand for contractors is likely to remain high as employers come under pressure to meet project delivery deadlines. The cost of using a contract workforce and any increases in rates may seem like a bitter pill to swallow, but the reality is hiring in 2022 is going to be challenging. Having a robust response to IR35 changes ahead of the April 2022 “soft landing” deadline will put you ahead of the game.


To find out more about IR35 and how Carrington West can help your business navigate the 2021 changes, please contact us.