Long-term effects of the Off-Payroll working rules reform for public sector organisations
Research into the long-term effects of the off-payroll working rules reform on public sector organisations.
Documents
Details
HM Revenue and Customs commissioned research to explore the long-term effects on public authorities of implementing the reform of off-payroll working, sometimes known as IR35, in the public sector.
The off-payroll working rules were first implemented in 2000, and later reformed in 2017 for public sector organisations. The rules 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 main aim was to explore the impacts of the reform in the key sectors of public administration and defence, education, and health and social care, by looking at possible effects on workforce structures, contractor rates and vacancies, and experiences of the implementation process. It follows the research into the short-term effects, which took place in 2017 and was published in 2018.
This research was carried out by IFF Research Ltd and consisted of 181 quantitative interviews, 101 interviews with individual sites and 80 with central bodies (covering 2,653 sites), and 30 qualitative interviews. Fieldwork took place across two phases: Phase 1 between September and November 2020, and Phase 2 between July and September 2021.