Survey shows lack of knowledge and resistance to IR35 change in healthcare.

Change aware.

Recruitment agency Search found there is a lack of knowledge amongst healthcare contractors as to the impending changes to tax legislation IR35, and concern among those who are aware of the changes.

Search undertook its research with 400 healthcare contract workers and found 71 per cent of healthcare contractors face an uncertain future with IR35 changes. Prior to conducting the survey, Search showed the respondents a video they had made explaining the upcoming changes. They found that 53 per cent were aware some changes were happening but were not sure what there were, whilst 18 per cent had no idea any changes were happening at all. Less than a third (29 per cent) described themselves as being fully aware that changes were happening.

With potentially more wide reaching consequences for healthcare provision, Search also found that 55 per cent of respondents, having watched the video, would now look to alter their working arrangements. 35 per cent claimed they would reduce the amount of contract they accept and 20 per cent claimed they would look to leave contracting work altogether. 

Search’s Lisa McLean said, “From a company perspective, we were pleased that most of the respondents (58 per cent) having watched our video felt clearer about the changes and are ready to accept them, but it still leaves a sizeable 42 per cent of healthcare contractors who are less certain about the future. There has been some controversy around the changes to IR35, but it’s coming nonetheless, and organisations and contractors need to be prepared for it. That said, it’s clear from our research that there hasn’t been sufficient communication from HMRC, not when you consider that 71 per cent of our respondents either had incomplete or zero knowledge of the changes.”

With the April 6th date looming, businesses who have yet to prepare for IR35, are advised to start making arrangements sooner rather than later.

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