In his first major speech since becoming Shadow Chancellor, Andrew Griffith told an audience at Capital City College Group in Tottenham that a future Conservative government would replace IR35 rather than reform it, and called on Chancellor John Healey to pause the rollout of Making Tax Digital for Income Tax at next month's Budget.

IPSE's Head of Policy and Research, Josh Toovey said:

"Contractors will welcome the sentiment behind today's speech. A commitment to replace IR35, rather than tinker with it again, is exactly the kind of ambition our members have been calling for, and a pause on the next phase of Making Tax Digital would give hundreds of thousands of sole traders breathing room they desperately need.

"But let's be honest about where we are. The IR35 system contractors deal with today was significantly expanded under Conservative governments, including its extension to the private sector. Making Tax Digital was also designed and legislated for on their watch. Contractors haven't forgotten who built and expanded the system they're now promising to tear down, and they'll be forgiven for taking these commitments with a pinch of salt until they see them written into a manifesto, let alone delivered in government.

"None of that means we're dismissing it. The rhetoric today was welcome, and it matters that the main parties are now talking seriously about the damage IR35 has done and the strain MTD is putting on the self-employed."

ENDS