The compliance bar for public-sector delivery has never been higher. <\/p>\n\n\n\n
From IR35 enforcement to framework rules, there\u2019s increasing scrutiny on how programmes are resourced and delivered. For SME consultancies and delivery partners, this makes it essential to get the fundamentals right from day one.<\/p>\n\n\n\n
At SR2 Consulting, we advise public-sector organisations and SMEs to ensure their projects are delivered on time, on budget, and fully compliant \u2013 helping avoid delays and support long-term success. <\/p>\n\n\n\n
This guide outlines what you need to know, what to avoid, and how we can help.<\/p>\n\n\n\n
IR35 remains a key compliance consideration \u2013 particularly for central government projects \u2013 despite the 2021 off-payroll working reforms now being well embedded.<\/p>\n\n\n\n
What hasn\u2019t changed is the need for a robust assessment process and a clear audit trail. What has changed is the level of scrutiny. Organisations are now expected to actively manage IR35 compliance, not just tick the box.<\/p>\n\n\n\n
One of the most common pitfalls we see is the use of blanket IR35 determinations<\/strong> \u2013 where all contractors are automatically classified as inside or outside IR35, regardless of role or working practices.<\/p>\n\n\n\n While this might seem like the safest option, it can quickly backfire. Contractors with strong in-demand skills are far more selective about the terms under which they work, and blanket \u2018inside\u2019 calls can reduce <\/strong>the calibre of talent willing to engage. In some cases, it can even delay onboarding and disrupt delivery timelines.<\/p>\n\n\n\n At SR2 Consulting, we work with public-sector clients and delivery partners to take a more rigorous and practical approach. That includes:<\/p>\n\n\n\n Taking the time to get IR35 right doesn\u2019t only mitigate risk and avoid penalties. It sets your programme up for success \u2013 with the right people, on the right terms, from day one.<\/p>\n\n\n\n A key development on the horizon: from 6 April 2026<\/strong>, both off-payroll working (IR35) and Companies Act thresholds will shift, affecting who must determine IR35 status.<\/p>\n\n\n\n Under the current rules, only medium and large companies are required to assess IR35 status for off-payroll workers. But the financial thresholds defining \u201cmedium\u201d will rise significantly<\/a>:<\/p>\n\n\n\n While these new thresholds apply from April 2025 for company accounts, they won\u2019t affect IR35 compliance until April 2026. This means some consultancies currently caught by the off-payroll rules will no longer have responsibility for status determinations from 2026 onwards.<\/p>\n\n\n\n\n
<\/li>\n\n\n\n
<\/li>\n\n\n\nWhat\u2019s Changing with IR35 in 2026<\/h2>\n\n\n\n
\n