The findings reveal that 55% of business leaders are using contract workers but will worry about IR35 once business is back to normal after the pandemic. This leaves impacted businesses susceptible to being investigated by HMRC given that the new IR35 rules for the private sector took effect five months ago.

Since 6 April 2021 private sector employers, apart from small businesses as defined in the Companies Act 2006, have been responsible for deciding whether or not the contractors they use are de facto employees and therefore if PAYE and National Insurance contribution (NIC) deductions should be made from payments to them.