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Contractor demand soars

Remote working ‘overcomes concern over IR35’

Remote workers ‘seeing opportunities’

Flexible working is driving up demand for contract workers and outweighing the impact of new tax changes, according to a recruitment specialist.

The introduction of controversial reforms to off-payroll working rules, known as IR35, were perceived as the “death knell” for contracting.

The changes were designed to shift responsibility over the correct use of self-employed contractors onto businesses, with a view to cutting tax avoidance and exploitation.

But many workers who chose to work in a non-permanent capacity are now finding themselves faced with a goldmine of lucrative opportunities, says Mike Stirton of Core-Asset Consulting.

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He has witnessed a 57% growth in demand for interim staff since this time last year as companies prepare to emerge from the pandemic, with flexible working creating even more competition for contractors across the UK.

He said: “While IR35 was a huge change when it was due to come into effect in April, it’s turned out to be nothing more than a storm in a teacup. 

See also: Match of the Day’s Gary Lineker in £4.9m tax battle

“In reality, it has created clarity for both companies and contractors, who are now in a much stronger position than they were a year ago.

“When the pandemic hit, companies took an understandably cautious approach and competition for interim work was fierce, with far more contractors battling for the small number of jobs available. As we moved through the pandemic, we witnessed a significant rebound of interim work from autumn onwards. 

“This year, however, companies are finding themselves understaffed and behind on key deliverables in the wake of the pandemic, with fewer people with the key skills they’re looking for – creating an enormous demand for contractors. 

“We’re seeing contractors’ rates increasing to accommodate the tax changes, which everyone appears to have accepted. Indeed, many of the larger financial services companies were prepared for IR35 last year.”

With remote and flexible working now the norm, companies now also face competition for interim workers on a UK-wide scale. This is pushing Scottish firms to compete with more well-paying companies in London, resulting in many firms increasing their rates of pay.

Mr Stirton added: “Firms are now losing out on key interim talent by not increasing their rates, because it no longer matters where you’re based.

“Scottish companies no longer have a monopoly on the rates here, which means that both the rates of pay and number of opportunities for contractors are increasing at breakneck speeds.

“IR35 proved to be simply an adjustment, and the demand for interim workers has skyrocketed – with no signs of slowing down, especially as we move through the still-unknown impacts of Brexit, which will see firms continue to reach out for interim staff across all areas of their business.”

See also: Match of the Day’s Gary Lineker in £4.9m tax battle



One Comment to Remote working ‘overcomes concern over IR35’

  1. Remote working won’t last forever. Employers are realising that the pace of work has slowed down dramatically after covid. This is why services in every type of industry are deterorating.

    So who are we kidding?

    Home working has too many distractions. I know many people who do an intense 2 hr shift and then spend rest of the day on Netflix.

    Most employers want people back at least 2 days a week once restrictions are relaxed. This means contractors will demand their expenses to be paid if require on-site.

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