Anti Contractor Prime Minister
The heavily anti contractor Prime Minister, Theresa May has decided to quit if her Brexit deal goes through. She will not handle the next phase of Brexit negotiations. Theresa May has been Prime Minister since David Cameron quit after losing the Brexit Referendum in 2016.
Major IR35 Changes in Public Sector
She and her Chancellor, Philip Hammond were responsible for bringing in major changes to IR35 in the public sector in April 2017. They were a disaster with many contractors leaving the public sector especially in IT and the NHS.
The IR35 rule changes meant that the fee payer, i.e. the person responsible for paying the contractor, would determine the IR35 status of contractors. Previously contractors decided their own IR35 status.
IR35 Changes in Private Sector
She will, however, leave contractors and freelancers a legacy. Those IR35 changes will be implemented in the Private Sector in April 2020.
Anti Contractor Prime Minister Theresa May and her Chancellor, Philip Hammond, showed what they though of contractors with the following statement.
Self Employed Person Earning £100,000 a Year
“It is an unfair anomaly that a self employed person earning £100,000 a year pays less tax than a permanent employee earning £100,000 a year.”
As all contractors know this is an unfair comparison. Indeed it shows the Prime Minister and Chancellor of our country to be economically illiterate.
Risk Factor for Contractors
It doesn’t take into account the greater risk that a contractor has to take. It doesn’t take into account the lack of holiday pay, sick pay, employer pension contributions, maternity leave etc.
There is no job security or career advancement.
Big Consultancies Influencing Government on IR35
It’s almost certain that this view of the self employed was implanted by the big consultancies that Government pay fortunes to.
The big consultancies have always seen contractors as rivals and would like to see them abolished altogether. Rather than companies paying £500 a day for a contractor with 10 years experience, the big consultancies would rather companies pay them £1,000 a day for graduates of 3 months experience.
All Prime Ministers are Anti Contractor
Of course, Theresa May is not alone in bashing contractors. Every single Prime Minister and Chancellor this century has been anti contractors. Labour and the Conservatives have been equally as bad.
Much of his is due to the ineffectiveness of those who lobby on behalf of contractors. Those taking decisions on contractors’ careers are not being sold good advice on contractors.
It’s not known exactly when Theresa May will quit. What is virtually certain, though, is that whoever takes over will be anti contractor too.
If you know anyone else who would find this article useful, please share it with them using the social media buttons at the top and bottom of the page.
Ad – Contractor Services
If you think you can benefit from using an umbrella company, try the following:-
Or do you need some professional advice on which umbrella company is right for you? Fill out the form below to receive expert advice.
For all necessary business insurance, including IR35, try Business Insurance for Contractors