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20% of UK businesses would rather axe their contractors than deal with IR35 – survey

MachDiamond Silver badge

"Oh, and when business slows down you don't have to think about redundancy payments, you just shrink your contractor workforce. No hard feelings, and thanks for all the fish."

I agree 100%. Seasonal business will be hit pretty hard. So will companies that hire in expert help for projects.

Some time ago, a friend that was the engineering manager at an aerospace company I worked for talked about forming a loose "company" to bid on technology contracts the US government puts out from time to time (SBIR and similar). The idea would be to have a minimum core group of people and a pool of engineers that would be brought in to perform the research/engineering to fulfill any contract awards. In essence, the vast majority of the workers would be outside contractors. You don't want to have to pay redundancy to a room full of rocket scientists.

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