IPSE letter warns Chancellor off ‘punishing’ private sector IR35 changes

IPSE has written to Chancellor Philip Hammond warning him off extending the disastrous changes to IR35 from the public sector to the private sector.

The letter was sent after reports emerged over the weekend that the Chancellor was considering extending the changes to IR35 in the November Budget.

IPSE cautioned the Chancellor that the UK’s 4.85 million self-employed already felt that they had been under sustained attack by the Government after the changes to IR35 in the public sector, the introduction of dividend taxes and the attempted Class 4 NICs hike in the last Budget. Extending the IR35 changes, it warned, would confirm the worst for the self-employed.

IPSE also emphasised three key reasons not to extend the changes:

  • It would unfairly punish one of the most productive sectors of our workforce, who contributed £255bn to the economy last year alone.
  • It would impair the flexibility of our labour market – one of our key competitive advantages – just when the Government should be promoting the self-employed to ensure our economic success after we leave the EU.
  • Finally, it would not even successfully tackle the issue of disguised employment. To effectively clamp down on disguised employment while also protecting legitimate freelancers, the Government should introduce a statutory definition of self-employment.

What can you do?

If you’re concerned about the risk of the IR35 changes being extended to the private sector, there are a couple of key things you can do:

  • Tell us how the changes would affect you. To be able to make the strongest case against the changes, we need real-life stories about the damage it would do. Email details about how the changes would affect you to: pressoffice@ipse.co.uk
  • Join us. If you’re not already a member, join today. Together, our voice is stronger.  

 

Letter to the Chancellor

 

Budget submission Autumn 2017

 

Meet the author

Chris Bryce

Chief Executive

Chris was one of the original 2,000 members of the organisation when it was formed as the Professional Contractors Group in 1999 and was a long-time contractor with a strong client base in global scale change management.

Before becoming a contractor Chris had a career in sales and marketing followed by 10 years in senior management in the logistics industry. Chris was appointed as Interim CEO in June 2013 and accepted the role permanently in December 2013.