Contractors IR35 Question
One contractors IR35 question that they were asking after today’s Queen’s Speech is what happened to the promised contractor attack in the last Queen’s Speech?
That Queen’s Speech took place only in October. What has happened since to have that removed?
Contractors IR35 Question List
- What was in the last Queen’s Speech about contractors?
- What did Theresa May say about Contractors and IR35?
- What happened to that promise in this Queen’s Speech?
- What is in this Queen’s Speech about contractors and IR35?
- Contractors IR35 Question – What was missing from this Queen’s Speech?
- What about the IR35 reforms in the private sector due in April?
- Will Sajid Javid Keep his Election Promise and Review IR35?
What was in the last Queen’s Speech about contractors
According to the October Queen’s Speech prepared by Boris Johnson and Sajid Javid, “We will increase fairness and and flexibility in the labour market by stopping employers and workers experiencing significantly different outcomes from flexible forms of working.”
You know what that means and who is to be the target.
What did Theresa May say about Contractors and IR35
Remember Theresa May and Philip Hammond saying that it was an unfair anomaly that a self employed person earning £100,000 a year pays less tax than an employee earning £100,000 a year”.
Then there is Treasury Minister Jesse Norman saying recently when answering a question in Parliament on IR35 “There is only 10% compliance in this area”.
What happened to that promise in this Queen’s Speech
The Budget to implement that was cancelled because of the election. However, one would have thought that this pledge on “Stopping employers and workers experiencing significantly different outcomes from flexible forms of working.” would be in the new Queen’s Speech.
However, it was not.
It’s the dog that didn’t bark in the night.
“Why not” is contractors IR35 question.
What is in this Queen’s Speech about contractors and IR35
The only thing in the Queen’s Speech that might refer to it is “Measures will be brought forward to encourage flexible working, to introduce the entitlement to leave for unpaid carers and to help people save for later life.”
I’m not sure if this is one thing or three things. Perhaps the first part refers to us and perhaps not. Surely making flexible workers pay more tax would not ‘encourage flexible working’. Perhaps it is more aimed at people with children. I don’t know.
Contractors IR35 Question – What was missing from this Queen’s Speech
So, why was this missing from this Queen’s Speech?
They must have deliberately taken it out?
Was it the success of lobbying efforts like the Stop the Off-Payroll Tax Campaign who got John Redwood to write to the Chancellor about IR35 and the problems it is causing?
Of course, just because it is not in the Queen’s Speech does not mean that it won’t be in the Budget due soon.
But it being missing from the Queen’s Speech makes it a lot less likely.
What about the IR35 reforms in the private sector due in April
Of course, there is nothing in the Queen’s Speech that says that they will abandon, or even postpone, the IR35 changes in the private sector due to roll out in April 2020.
This may or may not be a done deal. Although they could make changes to it like stopping companies from effectively blanket banning all contractors from operating through personal service companies.
It is more likely to refer to future planned legislation that would ‘increase compliance’ with IR35 from 10% to close to 100%.
Perhaps they feel they need more time to think about this before they destroy the flexible workforce completely.
Will Sajid Javid Keep his Election Promise and Review IR35
And Sajid Javid did say in the very late stages of the election campaign that he would order a review of IR35. That was after the Lib Dems and Labour promised the same.
Perhaps he means to keep his word.
“But will he?” That is contractors IR35 question.
That would be something new.
We have a new poll asking contractors what they would do if their client company put a blanket ban on contractors who operate through personal service companies. It’s on the top right of this page. Vote now!
Please share this article using the social media buttons at the top and bottom of the page.
Ad – Contractor Services
Many private sector contractors are likely to be told by their client company either that they must operate as an off-payroll employee or join an umbrella company. It’s time to plan for that now.
They need to look at umbrellas ASAP.
Do you need an umbrella company that is right for you and returns you most? Fill out the form below to receive a call today.
For all necessary business insurance, including IR35, click on Business Insurance for Contractors