IR35 a ‘fatal blow’ to UK’s flexible economy- Rec Grapevine

A trade body has slammed the Government’s off-payroll working rules – known as IR35 – as discussions precede about extending this legislation change into the private sector.

Last Friday, the Government opened its consultation on proposals to extend IR35 off-payroll into the private sector. Currently it believes that only ten per cent of Personal Service Companies that should apply the legislation in the private sector do so.

It also deduced that the cost of non-compliance with this legislation in the private sphere is costing the treasury £700million in the period 2017/18 – estimated to rise to £1.2billion in 2022/23.

However, Chris Bryce, CEO of IPSE, the Association of Independent Professionals and Self-Employed, has slammed the fact that HMRC are considering expanding the reforms into the private sector.

He said: “For the Government to even consider introducing the ill-judged changes to IR35 in the public sector to the private sector before their full impact can be truly analysed is outrageous.”