Following the hung parliament result from June’s snap election, Theresa May has since formed a government with the DUP.
Whilst the new government’s sights are set on Brexit negotiations and continued cuts to public spending, a survey conducted by Contractor Weekly reveals that, with regards to issues affecting the self-employed workforce, 72% of contractors want a fairer, simpler tax system.
Philip Hammond currently resides in his position as Chancellor, which may be worse for the public sector than the general contracting population if his track record is anything to go by. Whilst George Osborne set the ball rolling for the recent changes to IR35 in the public sector, Philip Hammond saw them through and many contractors continue to speculate over whether the April 2017 rules will be extended to the private sector.
IR35 has long been a cause for concern for limited company contractors, the majority of whom call for it to be abolished, or at the very least simplified. Fingers are crossed for the Matthew Taylor report into employment which is due any time now, and will look to “be recommending changes to the rights of self-employed workers”, to bring some positive change to contractors.
Seb Maley from Qdos Contractor, IR35 experts and contractor insurance specialists, comments:
“It comes of no surprise that contractors are looking for more fairness and simplicity in the tax system. IR35 is now 17 years old and hasn’t kept pace with a changing environment and increasing self-employed workforce. Over the past year in particular, contractors have experienced changes to how IR35 is managed in the public sector, tax hikes, and a government who doesn’t seem to support flexible working, leaving them feeling penalised for taking the risk of running their own businesses.”