More than a third, or 40%, of contractors are unaware of the upcoming IR35 off-payroll reforms which are set to impact the contractor community from April 2020, according to a survey from Morson Group.

Morson’s survey of more than 1,000 contractors also found that more than half, or 54%, of limited company contractors do not understand the details of IR35 and how to correctly determine whether they fall inside or outside of the legislation.

According to Morson, the survey results raise concerns that private sector employers are yet to begin reviewing their contractual workforce and how they’re supplied.

The same survey by the Morson Group also saw more than 600 individual concerns and questions raised around IR35 including ‘Can I appeal my client’s determination?’ and ‘Will sub-contractors be offered permanent positions?’

Phil Beardwood, compliance & assurance director at the Morson Group, commented, “Some businesses believe that it’s the responsibility of the labour provider to determine the status of their contractor workforce, yet it’s down to the end client to conduct these reviews and ultimately make this decision, which may provide the answer as to why some contractors aren’t yet aware of the forthcoming changes.

“Uncertainty caused by the Brexit narrative and the Chancellor’s decision to cancel the Budget has led to some organisations believing that the forthcoming IR35 legislation reform will be delayed or even cancelled,” Beardwood said. “This is certainly not the case and the new tax regime governing contractors will remain top of the agenda in the private sector. The countdown to comply is on, with those companies who choose to bury their head in the sand posing major risk to their operations.”

Beardwood continued, “Flexible workers are a major contributor to the UK economy and key to the country’s economic prospects, with many of our clients reliant on these ‘talent on demand’ workers, especially those operating in engineering, construction, IT, energy, aerospace, rail and defence. If we’re to preserve this vital workforce and remain competitive in a global marketplace, then it’s crucial to assess individuals fairly and on a case-by-case basis, and prevent them being wrongly placed inside, and vice versa outside.”