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Fears of further IR35 reforms
by Susie Hughes at 15:19 11/04/18 (News on IR35)
Despite widespread criticism of the new IR35 public sector measures, the majority of contractors believe further IR35 reform is inevitable and unmanageable.

Three in four contractors are bracing themselves for the announcement of private sector IR35 reform in 2018, which six in 10 do not believe is manageable.

The statistics have emerged while uncertainty surrounding the future of this tax legislation is heightened, as the Government hold an IR35 consultation which is due to be published in the coming months.

It is expected that the findings of this consultation will give an indication of whether the Government plans to press ahead with reform.

Seb Maley, from tax specialists Qdos Contractor, who carried out the survey, said: “Predictably and rather unhelpfully, the Government remains tight-lipped about its next moves with regards to IR35. And unfortunately the longer the silence continues, the more likely it seems the private sector will face changes.

“Understandably, many contractors fear reform, and they don’t trust end engagers – or HMRC’s IR35 tool for that matter – to make accurate IR35 decisions. The upheaval following last year’s public sector changes has not been forgotten.

“However, should clients and recruitment agencies begin preparations now, potential IR35 reform is in fact manageable. But mistakes made in the public sector cannot be made again.

“We hope such obvious contractor concern sends a message to private sector engagers that unless they equip themselves for reform, they risk losing the contractors they clearly rely on.”

For more information about the controversial public sector tests and rules; and other aspects of IR35, see Shout99's News on IR35 section.

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Susie Hughes © Shout99 2018

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