But while contractors can reject an inside IR35 decision they do not agree with, whether their client will re-engage them outside IR35, having already placed them inside IR35, is another question altogether.
For some businesses, it is now policy not to work with contractors who operate through personal service companies, irrespective of whether they belong inside or outside the rules.
While this is not a measured approach to reform — given the business is effectively sidestepping the incoming changes by not engaging contractors — it is something they are within their rights to do.
With this in mind, contractors who have been placed inside IR35 and want to revert back outside the scope of the legislation are advised to discuss this with their client and should it apply, their recruitment agency.
Can I overturn a blanket assessment or not?
A number of private sector companies have already reversed their decision to blanket-place all contractors inside IR35.
For contractors who — with others, whether in the same department or across the entire business — have been determined inside IR35, regardless of whether they belong there or not, this decision does not stand.
However, that is not to say a contractor can immediately return to working for that same client outside IR35.
A blanket determination — albeit technically non-compliant because it lacks ‘reasonable care’ — is a policy decision of the company.
In other words, the client holds the cards and may decide to uphold it well in advance of next year’s reform.
As frustrating as this is, contractors are likely to find many that more outside-IR35 opportunities exist as a result of the delay.
They can, therefore, reject a blanket assessment and source work as a genuine contractor elsewhere, although I am well aware that this is far from the ideal scenario.
Should I revert to outside IR35 working?
Assuming that a client is willing to engage a contractor outside IR35 — and many businesses have already backtracked on their initial blanket contractor bans since the delay was announced — the contractor must ensure their contractual terms and working practices both reflect a genuine business-to-business engagement.
Before operating outside the legislation, contractors tend to have their IR35 status reviewed by an expert. They then protect themselves with IR35 insurance, for peace of mind.
My client has not assessed my IR35 status, what should I do?
While plenty of contractors had been IR35 assessed by their client in the lead-up to the anticipated changes, many independent workers had not.
Due to the delay, these contractors do not theoretically need to do anything other than continuing to ensure their IR35 compliance for one more year when working in the private sector.
Will IR35 reform actually go ahead?
