As a professional, it`s important to stay up-to-date with the latest news in the industry. One topic that has been of major concern for contractors in the UK is the upcoming changes to IR35 legislation. Many contractors are worried that these changes will end contracting altogether, leaving them without work.

IR35 is a piece of tax legislation that was introduced in 2000. It was designed to prevent contractors from avoiding tax by working through their own limited companies, rather than as employees. This legislation has been a thorn in the side of many contractors, who have had to navigate complex tax laws in order to stay compliant.

The new changes to IR35, which will go into effect in April 2021, will shift the responsibility for determining whether a contractor is inside or outside of IR35 from the contractor to the client. This means that clients will be responsible for determining the tax status of contractors, and will be liable for any unpaid taxes if the contractor is found to be inside of IR35.

Many contractors are worried that this change will lead to a decrease in the number of contracts available, as clients may be reluctant to take on the additional responsibility and risk. However, it`s important to note that not all clients will be affected by the changes, and there will still be a need for contractors in many industries.

One way that contractors can prepare for the changes to IR35 is by seeking advice from a qualified tax professional. They can help you determine your tax status and ensure that you are compliant with the new legislation. Additionally, contractors can consider working with umbrella companies, which can help to simplify tax compliance and reduce the administrative burden of managing a limited company.

Overall, while the changes to IR35 may create some uncertainty for contractors, it`s unlikely that contracting will end altogether. There will still be a need for skilled professionals in many industries, and contractors who are proactive in preparing for the changes will be well-positioned to continue working in the future.