We’ve been running this really long poll asking IT Contractors about the pro-active steps taken by them in dealing with IR35. The total number of votes cast was 1,279.

The question we asked was “What have you done to prepare for IR35?”
                                       
The percentages:
                                                                                    2001     2004     2007
Made Changes to Contract to be outside IR35    19%    39%     32%
Did nothing                                                                    41%    27%      28%
Joined an Umbrella Company                                  15%    15%      16%
Contacted an IR35 Consultant                                  8%      11%      11%
Saving up for a big tax bill                                         17%     10%     13%

The figures showed that Umbrella Companies are a choice for roughly 1-in-6 of IT Contractors – at least those that read this site. Quite a sizeable number of IT Contractors have done nothing at all and have chosen to duck their head in the sand.

Changes to IT Contracts

It appears that the biggest percentage of IT Contractors, 1-in-3 are resorting to  the PCG advised route and making changes to their IT contracts to keep them outside IR35.

Then there's the 13% who are very up to paying tax.

This incidentally is only 3% less than those who say they've joined an Umbrella Company.