If the reforms go ahead, then public sector bodies and agencies would be responsible for deciding whether a contractor qualifies for IR35 restrictions. This differs from the current system where intermediaries like individual limited companies (commonly known as personal service companies) or umbrella companies decide IR35 status.
Experts believe that this will result in more public sector contractors being ‘caught out’ by IR35 legislation. Some fear that even the most independent contractors are at risk of paying more tax because of difficulties proving the absence of IR35.
