The majority of businesses are not prepared for IR35, with some even claiming it will take them seven to 11 months beyond April 6th 2020 to be up to speed.
This was discovered by a report conducted by Sullivan & Stanley, a business transformation consultant, who found that 32 per cent of companies said it will take them four to six months after IR35 is implemented to be ready for it, 20 per cent would be ready up to three months after it is implemented and 9 per cent saying seven to 11 months.
Nearly three-quarters (71 per cent) are unaware of the date IR35 will be coming in to effect, (6th April 2020), as well as 54 per cent saying they have not received enough information regarding it and another 52 per cent claiming to find it contradictory or confusing.
Only 38 per cent of businesses said they will have a robust strategy in place before the 6th April.
However, Sullivan & Stanley believe, that if prepared for IR35, it can present a positive opportunity for businesses. Just under half (47 per cent) are hoping that IR35 will provide a chance to review and improve systems.
Sullivan & Stanley believes positive outcomes could come out of IR35 for both businesses and contractors.
For businesses they are:
- Taking stock of the current situation and understanding the value it’s delivering
- Improving capability
Designing a new operating model fit for the future
- Embracing the best aspects of the gig economy
- Being measured against deliverable outcomes
Kevin Corne, chief operating officer (COO) at Sullivan & Stanley, said:
With only four months to go, we at Sullivan & Stanley want to help businesses and contractors alike, to better understand the updated IR35 legislation so that everyone is ready when it comes into effect on 6 April 2020.
A lot of businesses are looking at IR35 with a transactional lens and not taking into consideration its transformational capability. We believe that IR35, if prepared correctly, presents an opportunity to revolutionise operating models that future-proof firms, give freelance experts the recognition they deserve and change business for the better.
These results were put together by asking 500 UK business decision makers.