The Financial Times reports the banking giant has made the decision due to off-payroll working (IR35) rules being extended into the private sector from April next year.

Recruiter understands that should Lloyds have an ongoing requirement for a contractor with a specific capability, they will seek to offer the contractor a permanent role but for contractors working in positions where the requirement is deemed more medium term, they would be transitioned into a PAYE arrangement.

Last week, an email purportedly sent from Barclays Bank to its line managers revealed the banking giant told its contractors it would no longer engage them unless they go into PAYE by the end of February 2020.

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