Navigating IR35 Offset Changes in 2024: A Guide for Health, Safety and Sustainability Contractors


Navigating IR35 Offset Changes in 2024: A Guide for Health, Safety and Sustainability Contractors

Posted on 23 May 2024

Navigating IR35 Offset Changes in 2024: A Guide for Health, Safety and Sustainability Contractors

For many organisations, utilising health, safety and sustainability contractors are an indispensable component of their overall SHEQ function. Utilising contractors allows companies fast access to niche skills sets, the ability to scale teams with ease and to succinctly cover the gaps in employment – such as maternity cover.

Since the inception of IR35, health, safety and sustainability contractors have grappled with the challenges of compliance and the fear of potential liabilities. Many companies have shied away from engaging with limited company contractors due to the risks associated with misclassification, leading to a reduction in available opportunities ‘outside IR35’. This reality has often translated into financial uncertainty and operational limitations for contractors.

However, there has been a major recent legislative update with the introduction of the IR35 offset which can make engaging a limited company contractor once again more attractive. As a result, it is crucial for contractors to understand how these updates affect their business and how they can adapt to maximise opportunities.

Understanding IR35 Impact:

Enter IR35 Offset Changes:

The IR35 offset changes introduced in 2024 represent a significant shift in the regulatory landscape, offering both challenges and opportunities for contractors. These changes aim to address concerns surrounding double taxation and liability, providing a more balanced framework for contractor engagements. By allowing for the offsetting of taxes already paid by contractors against potential liabilities, the changes mitigate financial risks and open new avenues for contractor-client relationships.

Key Considerations for Contractors following the update:

Risk Reduction: With the implementation of offset rules, the potential tax liability for contractors in the event of a misclassification challenge is significantly reduced. This reduction in financial risk empowers contractors to pursue opportunities with greater confidence and peace of mind.

Increased Opportunities: As companies adapt to the new regulations and embrace outside IR35 engagements, contractors stand to benefit from a surge in available opportunities. By positioning themselves as compliant and knowledgeable professionals, contractors can capitalise on this shift in the market and secure lucrative contracts.

Maintaining Compliance: Despite the offset changes, contractors must remain vigilant about compliance with IR35 regulations. Taking reasonable care and ensuring accurate record-keeping are essential practices to avoid potential pitfalls.

In Summary

The IR35 offset changes in 2024 present a unique opportunity for health, safety and sustainability contractors to recalibrate their approach and capitalise on emerging trends in the freelance market. By understanding the implications of these changes, maintaining compliance, and embracing proactive strategies, contractors can position themselves for success in an increasingly dynamic and competitive landscape.


James Cox leads the Irwin and Colton Contract and Interim Team – if you are looking for your next health, safety or sustainability assignment or looking to engage a contract across health, safety and sustainability sector please get in touch on


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