BSA 2024 Internal Audit Salary Guide v3 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.
Initially, many organisations took a blanket approach
to the changes. Larger 昀椀rms often chose not to
engage contractors who were deemed ‘outside IR35’,
and our data showed 昀椀xed-term contracts (FTCs)
became the most common way to access 昀氀exible
resource at the height of the pandemic.
Today, 27% of organisations that use 昀氀exible resource
still primarily favour FTCs. But as the interim market
has improved, fewer candidates are willing to
consider these arrangements, believing they offer
neither the job security of a permanent role nor the
昀椀nancial incentives of traditional contracting.
Larger businesses also continue to be the most
likely to avoid outside IR35 arrangements, but this
approach is likely to mean they are missing out on
securing quality contractors.
Indeed, 43% of organisations currently claim that
IR35 reforms have affected their ability to 昀椀nd skilled
interim workers, with approximately one in 10 arguing
the impact has been ‘signi昀椀cant’.
“We’re 昀椀nding that it’s actually smaller, more agile
昀椀rms that are usually able to get the best talent and
save money within the interim market because
they are more likely to be 昀氀exible about outside IR35
arrangements,” Andrew explains.
