Contractors feel the government isn’t really encouraging their business model, and that it would prefer it more if they would become permanent employees. This is according to a new research report from contractor specialists Contracting Scout. In the report, it says that almost two thirds (60 per cent) of respondents think the government discourages contractors. Less than one in ten (eight per cent) think the government sees contractors as an important part of the workforce and encourages them.
On the other side, they enjoy the business sector more, as 46 per cent feels more appreciated there. A fifth (18 per cent) thinks this sector, too, discourages contracting. The majority doesn’t think Brexit will make a significant impact – 26 per cent believe it will be harder to find new work, and 11 per cent think it will be easier. More than a third (37 per cent), however, doesn’t think it will make any difference. Another quarter (26 per cent) doesn’t know what effect it will have.
Will Ryles, Head of Recruitment at Contracting Scout, comments: “It’s little wonder that contractors are feeling the government is trying to push them out of contracting. April 2016 saw new legislation come into force restricting travel and subsistence tax-relief for some umbrella or limited company workers inside IR35, as well as changes to the way dividends are taxed.
“The Autumn Statement is expected to reveal further details of the proposed changes to IR35 in the public sector. Contractors have enough to deal with without constant tax changes. There seems little appreciation for the fact that contractors provide flexibility and specialist skills that businesses and the public sector would not otherwise be able to access.”
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