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Self-employed sector “barrelling towards disaster” with IR35, IPSE warns

The self-employed sector will be severely damaged by the upcoming changes to IR35 in the private sector, IPSE has warned.

The Association spoke out ahead of a parliamentary debate today on the impact of the changes to self-employed tax law.

Andy Chamberlain, IPSE’s Deputy Director of Policy, commented: “It is definitely welcome to see MPs taking this vital issue seriously.

“We have to be clear: with these changes to IR35, the self-employed sector is barrelling towards disaster in April next year. 

“There were enormous problems when, in 2017, the government shifted the burden of deciding IR35 status from contractors to clients in the public sector. It will be even worse when it extends this to the private sector.

“Lorraine Kelly’s tax tribunal victory – the fourth of five IR35 cases HMRC have lost since 2017 – shows that even the government doesn’t understand this labyrinthine tax legislation. How can it expect private businesses across the UK to?

“This is a crisis for contractors, and IPSE is campaigning hard against it. Visit our website to join our campaign and use our template to write to your MP.”

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IPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.

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