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The Stop The Off-Payroll Tax campaign has written to the new Treasury Minister, Jesse Norman MP asking him to support UK contractors, rather than attacking them, by dropping plans to roll-out The Off-Payroll Tax – the so called ‘off-payroll or IR35 rules’ - to the private sector.
On the day that the IR35 consultation closes, a survey shows that nine out of ten contractors have not yet been contacted by either their client or recruitment agency to discuss next year’s IR35 reform.
IR35 status assessments conducted by both the Met Office and the Crown Commercial Service (CCS) have delivered 'unfeasibly high' inside IR35 or 'deemed employee’ status for contractors since the introduction of the public sector 'Off-Payroll' rules.
A Freedom of Information request has revealed that 98 per cent of IR35 status assessments carried out by High Speed 2 (HS2) in 2018 deemed the contractor to be caught by the Off-Payroll rules, fuelling suspicions of further non-compliance with the legislation in the public sector.
The Association of Recruitment Consultancies (ARC) has claimed that the proposed extension of the public sector IR35 rules to the private sector amounts to the introduction of a new stealth tax which has far reaching political and economic ramifications.