IR35 has long been the subject of controversy for limited company directors, with a new wave of panic spreading after the 2017 changes to the public sector were announced. But it seems that the trouble isn’t over yet as the government plans to push ahead with the changes to the private sector.
With the Autumn Statement just around the corner (we’ll be live-tweeting along!), we’re eagerly awaiting Hammond’s input on IR35 in the private sector.
Amidst these changes, in a recently published article, IPSE has voiced their opinion on how detrimental they believe the proposed updates will be for the self-employed and congratulated all those who have already taken action to protest these plans.
With more changes ahead in this year’s budget, we’ve outlined the key takeaways from IPSE’s report to help you fight your corner and keep you up to speed.
What could the changes to IR35 mean for me?
The proposed changes to the already controversial legislation could mean that the decision as to whether a contractor falls inside or outside of IR35 won’t rest with you but instead with your agency or employer, akin to the changes already in motion for public sector contractors. This means that you will forgo the freedom to assess your own status based on your working practices and it is possible that you could be deemed inside even if your working practices do not reflect those of a permanent employee.
What can I do?
IPSE have offered a number of actions to raise awareness and to make a stand against the changes:
Write to your local MP
It is crucial that Parliament understand just how unpopular this proposal is and a personalised letter may be the most effective method of sharing your experiences and voicing your displeasure.
Make your voice heard
Social media is a valuable tool and if used correctly can educate your audience. You should use your platform as an opportunity to share information, voice your opinion and connect with your fellow contractors.
There are plenty of valuable resources available that can help those in your industry to better understand IR35 and the implications of being caught inside. If you’re looking for a concise breakdown to what this could mean for your contract, read ClearSky’s guide to being inside IR35.
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