Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Exodus of contractors looms after IR35 changes in April

16 March 2021

A new survey of freelancers has found that 50% plan to stop contracting in the UK after changes to off-payroll tax rules come into effect in April - unless they can get contracts unaffected by the changes.

These are the dramatic findings of new research by the Association of Independent Professionals and the Self-Employed (IPSE). One year ago, when the legislation was previously due to come into effect, 32% said the same thing, suggesting that the pandemic has sharpened freelancers' concerns.

Instead of contracting in the UK, the freelancers polled said they intend to:

  • seek contracts abroad (24%)
  • look for an employed role (17%)
  • stop working altogether (12%)
  • retire within the next year (11%)

The new rules mean that many self-employed people working for a client on a freelance basis will now be taxed as employees ("inside IR35"). However, there are widespread concerns that employers are not ready for the new rules. Nearly one in four contractors (24%) said their clients were either uncertain or had provided no indication of what they will do in response to the IR35 changes. A quarter (24%) said that their clients were planning to blanket-assess all their contractors as "inside IR35" and 21% will only engage contractors through umbrella companies. Nearly one in ten contractors (8%) said their clients were planning to cease using contractors altogether.

IPSE is urging the government to delay the changes to IR35, warning that the sector is not ready, especially after the financial impact of coronavirus. "The pandemic has done disproportionate financial damage to the self-employed sector: after this, it simply cannot take the added hit of the changes to IR35," said Andy Chamberlain, IPSE director of policy.

"This research shows that not only are a large proportion of businesses not ready for the changes: many others are responding by either ceasing to engage contractors altogether, or forcing them inside IR35 or into umbrella companies - both of which will slash their incomes. It is not surprising, therefore, that so many freelancers are reconsidering their prospects in the UK workforce."

Dave Chaplin, ceo of ContractorCalculator and IR35 Shield, has warned that "any firm yet to conduct an IR35 status assessment on its contingent workforce may need to consider terminating its contracts to avoid considerable financial risk until due processes are put in place".

Chaplin estimates that 60,000 businesses, 20,000 agencies and 500,000 contractors will be impacted by the new tax rules.

He said: "Regrettably it's termination time for any hirer that is not ready for IR35 judgement day on 6 April - let your contractors go, get your strategy in place and start assessing your contractors again under the new rules and with new contracts. If you don't, you will have a mess on your hands and significant additional costs to bear too. The message is clear - wave hasta la vista to your contractors and hope that they'll be back, once you've assessed them correctly."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to our lively and colourful newsletter for new and more established small businesses.

Contact us

Make an enquiry