2021 has once again thrown countless challenges at the contracting industry. From Brexit to the introduction of IR35 and, of course, the ongoing COVID-19 pandemic, the industry has once again shown its resilience.
Whilst the entire contracting industry gears up to celebrate the festive season, we are taking a look at what 2022 brings for contractors throughout the UK and what it will mean for their career.
Who could forget the introduction of IR35 reforms for the private sector this year, something that we had spent a number of years preparing for. Now that it’s here, recruitment agencies are continuing to adjust their practices to ensure they comply, but there is still a long way to go before many agencies truly feel confident that they have the process for accurately determining IR35 down. We expect 2022 will continue to find agencies adjusting to the reforms, but it is very positive that they are continuing to work with limited company contractors, and know who to refer contractors to should they find themselves inside of IR35 (hint: it’s us!). In addition to this, some sources are claiming that the IR35 small companies dispensation may be removed; although we have no official word yet, this is something we could potentially see in the new financial year.
The rise of the new COVID variant has meant that some restrictions are back in place. Whether these restrictions are loosened or tightened come 2022 is yet to be known, but what we do know is that contractors and agencies are now accustomed to adapting to restrictions at a moment’s notice with little disruption to their day-to-day work. As a result, should further restrictions be introduced, contractors are far better prepared than they were at the beginning of the first lockdown in 2020, and should therefore find themselves in a much better position.
Businesses looking for the support of contractors has continued to rise in 2021, and with flexible working practices becoming commonplace, we expect opportunities to continue to rise into the New Year. Furthermore, for CIS contractors, COP26 inspired both the government and construction companies to take part in green construction initiatives, this means significant opportunities for construction contractors in 2022 and beyond.
Are you excited for what 2022 will bring to your contracting career? If you are looking for expert Umbrella or CIS support in the New Year, contact the Exchequer team today to find out more about our services and the benefits we offer.