Short-term effects of the 2021 off-payroll working rules reform for private and voluntary sector organisations
Research into the short-term impacts of the 2021 off-payroll working rules reform on private and voluntary sector organisations.
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HM Revenue and Customs commissioned research to explore the short-term impacts of the 2021 off-payroll working rules reform, sometimes known as IR35, in the private and voluntary sectors.
The off-payroll working rules were introduced in 2000 to ensure individuals who work like employees, but through their own limited company (often known as a personal service company) or other intermediary, pay broadly the same Income Tax and National Insurance contributions as individuals who are directly employed. The rules were reformed in 2017 for the public Sector and in 2021 for medium and large sized private and voluntary sector organisations.
The main aim was to understand the possible effects of the reform on workforce structures, contractor rates and vacancies, and experiences of implementing the reform for private and voluntary sector client organisations. It follows research into the short-term and long-term effects of the reform in the public sector, which was published in 2018, 2021 and 2022.
This research was carried out by IFF Research Ltd and consisted of 353 quantitative interviews, 285 interviews with establishment-level organisations and 68 with group-level organisations, and 39 qualitative interviews. Fieldwork took place between November 2021 and April 2022.
HMRC has published its own analysis on the impact of the 2021 reform of the off-payroll working rules.