New research reveals potential impact of IR35 on the construction industry

HMRC

New research into the long-term implications of IR35 shows that more than half of managers in the construction industry are concerned about how the legislation will affect its workforce.

The research, from Search Consultancy, highlights that 56% of managers believe the changes to tax legislation will leave them with a significant skills shortage as end clients veer on the side of caution when recruiting contractors.

From 6th April 2021, responsibility will now fall on the end client to determine whether contractors are self-employed or employed for tax purposes. Confusion surrounding the legislation means end clients are taking a conservative approach to hiring contractors, significantly reducing the talent pool available to them.

With 83% of managers within construction believing the industry already suffers from a skills shortage, IR35 could worsen an already difficult situation.

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