Construction faces significant tax changes coming into effect on 6 April. These changes to the Off-Payroll Rules or IR35 legislation and will shift responsibility for deciding an independent freelancer’s tax status from the individual to the company using their services. In simple terms, this places greater legal risk on construction firms using freelancers.

IR35 is not being scrutinised as closely as it deserves, with all the current focus on big-ticket issues like covid-19 and the global recovery effort, Brexit and climate change. But the rule changes are significant, creating new exposure for businesses with a particular reliance on independent freelancers. ONS data shows that nearly half of construction contracting jobs are self-employed, making the sector one of those most affected. The pandemic has made access to a flexible workforce particularly important, as the cost of taking on permanent staff is often not feasible.

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