2026: The Year Ahead For Contractors

In this in-depth webinar, Dave Chaplin, CEO of IR35 Shield, shares a forward-looking analysis of the UK contractor market and explains how recent legal and legislative changes are reshaping IR35 and off-payroll working.

Dave begins by outlining clear signs that parts of the market are reopening to contractors. Blanket bans, while still present in some organisations, are slowly being lifted as firms gain confidence in their compliance processes and HMRC’s current approach. He explains why many organisations are now moving away from HMRC’s CEST tool, highlighting that it has no legal authority, is out of date, and is ignored by HMRC when forming status opinions. Instead, HMRC relies on established case law, which Dave clarifies is now settled following the Atholl House Court of Appeal ruling and its ratification by the Supreme Court in September 2024.

A major focus of the webinar is the offsets legislation introduced in April 2024, which Dave describes as the most important reform to IR35 since off-payroll rules were introduced. This change removes the problem of double taxation and dramatically reduces the real tax risk for end-clients—often to less than 10% of contractor fees. As a result, one of the biggest barriers to hiring contractors has been removed.

Looking ahead to 2026, Dave explores upcoming umbrella company legislation and the Employment Rights Bill, explaining how both may influence hiring models, agency payroll, and the future use of umbrella companies. He concludes with practical guidance for contractors working with small clients, outlining four essential steps—education, contracts, assessments, and insurance—to avoid becoming “low-hanging fruit” for HMRC.

This webinar is essential viewing for contractors and hiring organisations seeking clarity on IR35 risk, compliance, and future market opportunities.

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