Reflections from a recent Business Forum International (BFI) event

Last week, I attended a thought-provoking and surprisingly uplifting event in London, hosted by Business Forum International (BFI). The focus was, of course, IR35 – a subject that has often felt as welcome as a tax return in January.

One of the standout speakers was my old friend Tom Hadley, formerly of the REC, who brilliantly compared IR35 to the Greek myth of Sisyphus. In case you’ve forgotten your classics, Sisyphus was condemned to an eternity of pushing a boulder uphill, only for it to roll back down each time he neared the summit. Tom’s analogy hit home – many of us in the interim and contracting space have shared that feeling! But despite the ongoing complexity, my main takeaway from the day was a sense of cautious optimism. Things are, finally, getting better. Here’s why:

1. The cost of permanent hires is rising – opening doors to interim solutions

With recent hikes in National Insurance, permanent hires are more expensive than ever – and that includes interim professionals working through umbrella companies. Increasingly, I’m hearing from clients who are rethinking their approach to resourcing. Rather than defaulting to hiring five or six permanent team members, they’re looking at more agile, flexible, project-based delivery models. This shift is reflected in our own data at Russam: our vetted talent pool of interim candidates has grown significantly, from 18,000 pre-Covid to over 30,000 today.

2. The end of “blanket bans” – a more informed IR35 approach

The widespread blanket assessments that pushed many non-permanent workers into ‘inside IR35’ roles – especially in large corporates and the public sector – are becoming a thing of the past. At Russam, we saw several interims displaced due to these policies, particularly within major banks and central government. But the mood has shifted: companies are now far more informed about IR35 compliance. It’s taken time, but progress has been made.

3. The April 2024 “Offset” rule reduces risk

One significant change that flew under the radar for many – myself included – was the “Offset” rule introduced in April 2024. This reduces financial exposure for businesses when HMRC challenges an IR35 determination (as long as there’s no fraud involved). If a contractor was wrongly assessed as ‘outside’ but should’ve been ‘inside’, any penalty now accounts for tax already paid – bringing the effective cost down to around 15%, rather than the previous 50–55%. It’s a notable de-risking of the IR35 landscape.

4. A growing need for external expertise

There was also a broader discussion about talent and skills. Many CEOs admit they’re struggling to upskill existing staff quickly enough. According to data shared by Tom Hadley from the World Employment Confederation, 78% of business leaders say they can’t retrain fast enough to meet demand. The result? A rising reliance on external professionals – including interim managers – to bring in much-needed expertise. Our own stats at Russam support this: in 72% of assignments, the skills our interims provide were previously non-existent within the client organisation.

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Another key point that resonated with me was the reminder that Interim Management is a form of outsourcing. It’s a service, not a stopgap. As one speaker put it, “Temp equals inside IR35, services equal outside.” In other words, it’s not just about time served – it’s about the value delivered. Many interim assignments are project-based, outcomes-driven, and may even conclude early if the work is completed faster than expected.

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Final thoughts: Why do professionals choose interim life?

We also touched on a slightly existential question: why would anyone choose to go it alone as an interim or contractor, especially in uncertain economic times? The answers were familiar – cash, control, and respect. But I added another: challenge. Many of our interims are drawn to variety, complexity, and the chance to keep growing. Every new assignment brings opportunities for learning, problem-solving, and continuous improvement – even for the most seasoned professionals.

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The takeaway? IR35 may still feel like pushing a boulder uphill at times – but perhaps, finally, we’re seeing the summit.