The reality of IR35

End Client Survey

SThree recently delivered its response to the House of Lords Sub-Committee review of the Off Payroll Working rules (IR35) reform in the private sector.

This is a huge issue for employers and contractors alike and as the only global pure-play STEM staffing specialist, with our Public Sector experience and PLC status, we believe our voice will be a valuable addition to the discussion.

We have left the survey open to gather additional feedback from you on the impact of the proposed reform and would love to hear from you.

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* 1. Are you currently an End Client in the Public or Private Sector?

Public

Private

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* 2. What have you seen happen from your experience of the IR35 reforms in the Public Sector (if applicable)?

Blanket Inside IR35 determinations provided to contractors

Client requested that contractors to accept assignment on Inside IR35 basis with no change to pay rate

Moved contractors to PAYE/Umbrella setup

Issued blanket ban on using Limited Company contractor

Other (please specify)

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* 3. Do you believe that the lessons learnt from the Public Sector IR35 reforms have been considered as part of the draft Finance Bill Proposal?

Yes

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* 4. As an End Client have you assessed your contractors IR35 status using reasonable care?

Yes - most assignments are Inside

Yes - most assignments are Outside

Yes - a mixture of Inside and Outside

No - we haven't started assessments yet

Currently making assessments

Internal decision made that we will not work with contractors using a Limited Company

We will stop using contractors

Other (please specify)

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* 5. As a result of the decision making process made by your business, what actions have you seen contractors take?

Remain a contractor using Limited Company

Enter permanent employment with your business

Move to PAYE through an Umbrella / Agency or Consultancy

Stop working as a contractor

Retire

Start contracting overseas

Close down Limited Company

Other (please specify)

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* 6. Is the assessment that has been made of the compliance burden (including costs) of these new rules realistic?

Yes

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* 7. Has the right balance been struck in the compliance burden on the taxpayer and on HMRC?

Yes

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* 8. What will be the effect of these new measures on a chain of contractors and sub-contractors?

Greater confusion as to who is the end user

Increased administrative burden

Risk of non-compliance further down the supply chain

Delays due to determination not being passed down chain promptly

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* 9. Do you think the impact of the extension of the off-payroll rules to the private sector been adequately assessed?

Yes

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* 10. What scope might there be for simplifying or otherwise reducing the administrative burden of these measures?

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* 11. What is your assessment of the Check Employment Status for Tax (CEST) tool?

Extremely Poor

Poor

Average

Good

Extremely Good

Extremely Poor

Poor

Average

Good

Extremely Good

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* 12. Do you think the Check Employment Status for Tax (CEST) tool requires improvement?

Yes (please provide details if you would like)

If answered Yes to the above please comment here

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* 13. How effective will the status determination process be in resolving issues of employment status? Are there adequate safeguards, allowing decisions to be challenged? If not, what more is needed?

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* 14. Do you think the Bill, as drafted, will achieve the Government's objectives?

Yes

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* 15. As an end client or hiring manager, do you fully understand what is being asked of you in relation to the reform of IR35 rules in the Private Sector?

Yes

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* 16. Does the reform of the rules in the Private Sector make your more or less likely to hire contractors?

More likely

Less likely

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* 17. What effect do you think the reform of the rules in the Private Sector will have on your company?

Positive impact

Negative impact

Neutral