Recruiter's guide to IR35 - what agencies need to know​

Contractors and interim managers play an essential role within our economy, especially in periods of transitions and uncertainty. The planned changes to taxation could significantly impede labour market agility at a time when UK businesses need most of it.

The chancellor's smash-and-grab approach to taxing the smallest businesses is short-termism on steroids. It is a short-term tax grab what will do lasting damage to the economy by taxing out of existence the smallest and most agile businesses.

For all the government's promises to support independent workers, but announcing private sector IR35 reform the administration has shown, yet again, that it is more focused on squeezing the highest amount of tax out of contractors, not necessarily the right amount.

Organisations should begin by reviewing their existing contingent workforces to determine which employment models are being deployed. In addition, Samatha Hurley advises employers to engage with the recruitment supply chain to chain to discuss which riles are likely to be affected and to determine if workers with those skills are thin on the ground or easily replaced. She also recommends ensuring IT systems and internal processes are in order to cope with the new rules, stating that 'to be forewarned is to be forearmed'.

The government's decision to delay the introduction of the new IR35 rules to the private sector until 2020 (now deferred to 2021) shows that they've listened to the warnings of experts and industry leaders. IR35, in its current state, will hurt innovation, productivity and ultimately the economy. We hope HMRC will take this period to reflect upon the deeply flawed regulation and make the necessary adjustments to support, not hinder, the UK's business and contractor communities.