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Third of companies say they’re extra more likely to rent contractors this 12 months

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Just below a 3rd (32 p.c) of UK employers plan to rent extra contract employees this 12 months, in accordance with a brand new report [registration] from recruitment firm Robert Walters. Over 1 / 4 (29 p.c) report being inspired to take action by the upcoming IR35 offset rule – coming into impact in early April. Not solely that, however a January report from KPMG & REC discovered that demand for short-term professionals continued to extend softly throughout the non-public sector in the direction of the tip of 2023 – boding effectively for this 12 months’s hiring.

Regardless of over 1 / 4 (29 p.c) of employers really feel the upcoming offset rule will encourage them to rent for extra contract roles this 12 months – 2 in 5 really feel uncertain on the upcoming rule and the way it will influence their enterprise.

From April 6, the brand new offset rule will permit HMRC to offset the taxes already paid by the contractor towards the PAYE tax legal responsibility they declare from the fee-paying consumer (normally recruitment businesses or end-clients) – in essence, eradicating the chance of double taxation for employers.

Lucy Bisset, Director of Robert Walters UK feedback: “Within the wake of tighter budgets, headcounts being streamlined and different cost-cutting incentives – we’re seeing employers more and more turning to skills-based short-term hiring.”

Inside IT, job ads for contractors with abilities in DevOps and Mission Administration has elevated a 3rd (+33 p.c) on the identical time final 12 months. While in Finance and Accounting, job adverts for contractors with abilities in Enterprise Evaluation have seen a +25 p.c enhance.

1 / 4 of employers acknowledged points with compliance and rules as a key problem to hiring contractors this 12 months. While simply over two-fifths (41 p.c) cited points with sourcing expert contractors as the primary problem.

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