Majority of self-employed ‘unprepared’ for IR35 changes, says EY

The majority of the UK’s self-employed workforce are “unprepared” for changes to off-payroll working rules, commonly known as IR35, according to a survey carried out by EY.

Starting from 6 April, businesses will determine the IR35 status of contractors working through a company in a bid to tackle non-compliance with the rules.

The firm’s poll of 500 self-employed workers revealed that nearly half (44%) of respondents believe changes to IR35 should be delayed and 17% claim it will reduce their income.

Nearly three-quarters (72%) said they were “unprepared for the change”, with 36% confirming they were unaware of the upcoming changes.

Mark Lee, EY UK’s TaxChat leader, said: “The implementation of the off-payroll working rules have been postponed once already, yet we are still in a position where many self-employed individuals appear to be in the dark. 

“With the new rules coming into effect from early April, it is now a matter of urgency for those affected to understand how they may be impacted – not only form a tax perspective but in terms of earnings and cash flow.”