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UK – Number of UK tech freelancers fall in the wake of public sector IR35 reforms (The Register)

23 October 2019

The number of freelance IT contractors working in the UK fell by 2.4% in 2018 compared with the previous year, the first fall in five years, reports The Register, citing data from the Office of National Statistics and accountancy firm Access Financial. The number of freelance IT contractors totaled 121,989 in 2018. Access Financial states that, following the impact of IR35 reforms in the public sector, many contractors have been moved into permanent roles or umbrella companies. In April 2017, the UK government reformed the rules in the public sector, shifting the responsibility for determining employment status from workers to the public authorities. From April 2020, the same rules will apply to the private sector. The changes have been blamed for a number of delays to public sector IT programmes due to freelancers quitting. Other industries have also seen an impact in how they engage freelancers and contractors with banking giant Barclays recently announcing that it would no longer engage contractors who provide their services via a personal services company, limited company, or other intermediary, unless they work on a PAYE (pay as you earn) basis.