IPSE response to IR35 / off payroll research released today

Posted On: 
29th May 2019

Andy Chamberlain, IPSE’s Deputy Director of Policy, responded to the research released today by Brookson Legal and Qdos.

This research demonstrates exactly how big a mountain UK business has to climb to catch up with the off-payroll rules. There is a very real risk that contracting, which is a proven driver of innovation and productivity, will be pushed into decline in the UK at the time that it is needed most.

It is no surprise that clients haven’t spoken to their contractors about these impending changes, they simply don’t know what the new rules will be. We are all waiting to see the draft legislation and that won’t be published until July at the earliest. What we have seen so far is too complex, totally unfit for purpose, and with so many variables that haven’t been decided.

I am at a loss how businesses are expected put processes in place in less than a year when HMRC fails to make correct determinations after 20 years. April 2020 is an unrealistic deadline – implementation should be delayed for at least another year.

That a majority of firms are planning a blanket approach to IR35 assessments, is deeply alarming – and in direct contravention of the government’s stated intention. The government needs to hit the pause button. It cannot push ahead with the reform while there are clear indications that businesses will not be able to comply with the new rules.