Mistakes to avoid in your contractor audit

Learn from the public sector’s mistakes: back in 2017, when they faced similar changes, many
public sector organisations took an oversimplified approach to assessing their contractors.
Some even categorised all of them as inside IR35 and put genuine independent contractors on
PAYE contracts. This not only drove up costs for the organisations, but also drove many
contractors to the private sector.

And cost isn’t the only concern if you’re overzealous about complying with the new regulations.
Because contractors can appeal if they don’t agree with your decision to place them inside
IR35, you could face a major administrative burden if you take a blanket approach.
Another learning from the public sector: there’s likely to be temporary disruption in the
contracting market as everyone adjusts.

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