IR35 continues to be a significant consideration for UK hiring heads, particularly within accounting, audit and tax functions where contractors are often engaged for specialist or project-based work. Designed to prevent disguised employment, IR35 determines whether a contractor should be treated as an employee for tax purposes. Since the off-payroll reforms, responsibility for making this determination now sits with the end client, placing greater accountability on organisations and the hiring leaders who shape these roles.
For hiring heads, the impact of IR35 is both commercial and operational. Incorrect status determinations can expose businesses to financial risk, while inside-IR35 engagements increase costs through employer National Insurance and payroll administration. At the same time, overly cautious or blanket decisions can restrict access to experienced contractors, reducing flexibility and making it harder to secure scarce finance, audit and tax expertise when it is needed most.
Engaging contractors compliantly also requires a shift in approach. Roles must be clearly defined, working practices carefully managed and contractors treated differently from permanent employees in order to support outside-IR35 status where appropriate. This has added complexity for hiring managers, who must balance delivery pressures with governance, compliance and internal approvals.
At Sheridan Maine, we understand the challenges IR35 creates for hiring heads because we work with them every day. As specialists in accounting, audit and tax recruitment, we help organisations navigate the contractor market with confidence, providing informed advice on role design, market conditions and resourcing options. Whether hiring on a permanent, interim or contract basis, we act as a trusted partner to help our clients secure the right talent while remaining compliant.
