A month ago we reported the demand for contractors in the IT sector is on a rise. As there is a scarcity of IT skills for full-time jobs, freelance technologists gained popularity in the sector. Making things even better, the contractors also saw a decline in rate cuts to 17% (April’17) from 19% (June’16).
Unfortunately, things are not so hunky dory for the techies. More than 4 out of 10 techies say that due to Brexit, it is much less likely for them to start their own business ventures. In fact, 70% of them have even considered moving overseas to live and work due to UK’s divorce with the EU.
Not only this, the number of firms making offers to the freelance techies in the UK has also gone down since the Brexit decision. Remember how 85% of PSCs planned to quit the public sector before April 6; well now, the techies are migrating and that is also because of the Brexit threat.
According to a survey by IPSE, the contractors’ confidence has fallen to the second lowest level on record. The survey-takers seem to be less optimistic about their career since late 2016. What do you think will push up the confidence levels of the flexible workforce? Simplification of Making Tax Digital? Maintenance of the current rates of NICs? Maybe.
Another thing: the probe on the “wholly, exclusively and necessarily” test for contractor expenses – as promised in the Budget 2017, will now run till 12th July and not 10th June as originally decided. Now that the contractors have got an extension, they can have their say on whether the rules on claimable expenses can be made clearer.
If the probe is wide-ranging, then the contractors can also expect some development on Travel and Subsistence expenses. Do you think this will make the contractors a bit happier about the current times? That only time will tell.
So if you feel the need to discuss the IR35 reforms and get your employment status sorted, give us a ring on our Tax Helpline (020 3507 0022). Please remember: we are here for you.