Changes that have impacted contracting have been coming ‘thick and fast’ yet the desire for professionals to work on a self-employed basis carries on regardless
Substantial changes to IR35, particularly in the Public Sector, increases on the taxing of dividends, the severe reduction in the claiming of expenses, Agency Worker Regulations and the imposition of RTI reporting and Pension Auto Enrolment are just a cross section of the burden placed upon self-employed contractors.
Much of this change works in complete opposition to the fact that the ‘new generations’ of professionals are seeking increased flexibility in their work life, “start-ups” are fashionable and increasingly attractive to the UK’s brightest, budding entrepreneurs and the creation of ‘new’ jobs is happening in the world of SME’s whilst big corporates continue to restructure.
The contracting workforce is an effective way for companies to access specialist talent that they may not ordinarily be able to attract, engage that talent on a variable cost basis, avoid the pitfalls of permanent hiring and have the ability to scale up/down quickly.
European contracting markets have been heavily regulated however as they loosen some of the rigour placed upon the flexible work market to encourage & stimulate growth, the UK does the opposite. With Brexit looming is the “direction of travel” in reverse?
What has been the major negative initiative imposed upon the contracting market in the past 3 years?
What factors still make contracting an attractive option?
Does Contracting have a future in ‘UK Inc’?