BSA 2024 Compliance Salary Guide v2 SPREADS - Flipbook - Page 8
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The long-term effects of IR35
Over the last few years, we’ve tracked how employers
and candidates have navigated the IR35 reforms
that were introduced in April 2021.
Our data suggests that while the immediate impact
of the changes appeared limited, some longer-term
trends are beginning to emerge.
Among candidates, for instance, there has been
a signi昀椀cant rise in the number of contractors who
are open to taking on permanent roles since IR35
came into force.
In 2023, two-thirds of professionals (67%) had either
considered or accepted a permanent job, compared
with just 18% who said the same a year earlier.
If this trend continues, talent shortages may become
more prevalent across the interim market, particularly as many larger organisations have taken a
blanket approach to IR35 reforms.
“Once the changes were introduced, most big
banks and 昀椀nancial services 昀椀rms chose not to
engage with ‘outside IR35’ contractors,” says Michael
Cunningham, Executive Consultant at Barclay
Simpson.
“That stance hasn’t really changed. So what may
happen as a result is that talented contractors begin
to shift away from traditional banks and favour
smaller organisations who are willing to offer more
昀氀exible and lucrative terms.”
