The Chancellor should use her Autumn Budget to make off-payroll working rules
'fairer and more effective', according to the Association of
Independent Professionals and the Self-Employed (IPSE).
IPSE says that the rules, commonly known as IR35, are still causing significant
disruption for businesses and public bodies needing to recruit freelancers and
contractors for their operations.
An IPSE survey of 1300 contractors in early 2024 found that 54% had walked away
from an offer of work due to disagreements over the client's IR35 determination.
It says the last government presided over a disastrous tightening of IR35 with
the off-payroll working reforms. It is asking the new government to find a
'fairer and more effective way for people to work as freelancers without being
subject to endless challenges from their clients and the taxman'.
IPSE also called on HMRC to give taxpayers the support and the Chancellor to end
the uncertainty over Managed Service Company legislation.
IPSE's Fred Hick said:
'For the first time since Spring 2010, a Labour Chancellor will deliver a
Budget statement to the House of Commons. Government has so far painted a
dour picture in the run up to the statement, with the Prime Minister warning
that the Budget will be 'painful' – leading commentators to conclude that
tax rises and spending cuts are on the way. But after a painful few years
for the self-employed, we're hoping government can spare some positivity for
the sector.'
Internet link: IPSE