IPSE reacts to reports of a "crackdown" on so-called "personal service companies"


The Guardian and Daily Mail ran reports over the weekend of an expected "crackdown" on so-called "personal service companies", including a one month time limit on engagements.

Reacting to the reports, IPSE Chief Executive Chris Bryce said:

"IPSE are seeking urgent clarification on whether reports of a "one month" limit, after which individuals will be "obliged to move onto the payroll" are under serious consideration. This would make operating a freelance business almost impossible in many instances, and would cause untold damage to the flexible economy. If the Government are giving this idea any consideration, they should think again.

"This measure was not contained within the Government's original consultation documents and has not been raised by the Government with stakeholders in its regular IR35 Forum meetings. Springing such a measure on a sector which is already short on confidence could cause significant harm to the economy, which relies on independent professionals for flexibility and innovation.

"Our members see themselves as small businesses and the Government must recognise that if freelance contractors are taxed as employees, then many will expect employment rights in return. We are very concerned these measures will damage the UK's flexible labour market, making it less tenable for independent professionals to lend their expertise to businesses requiring their services."

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