Extended Teams or remote R&D can be a relief from IR35
The level of disruption caused by IR35 is so huge that many brands are now looking further afield in order to find the talent they need and stay competitive.
After all, in an increasingly interconnected world, it isn’t as if the talent that they’re looking for can only be found in the UK. The regulation which seeks to stop contractors from paying themselves through dividends (which aren’t subject to National Insurance), will be more difficult for companies to ignore. Indeed, Barclays have already jumped the gun and have moved their IT contract roles to PAYE. Other companies are likely to follow suit.
Particularly for IT expertise – like those Barclays have moved to pay-as-you-earn (PAYE) – pockets of highly skilled people are available across Europe. If you’re looking to compliment your full time IT staff with the flexibility that you’ve grown used to with contractors, it might end up making more sense for you to consider an overseas extended team.
Lots of brands have already found success doing just that. And when you consider that the day rates of developers in IT hubs such as Ukraine are often much more cost-effective than the UK, it’s not hard to see why.
The full impact of the IR35 changes due to roll out in April might not be completely clear until around this time next year. But it seems that those most likely to suffer will be the UK-based contractors themselves.
Biting the hand that feeds IT
