Government IR35 Changes Confirmed – Contracting Profession Doomed

Government IR35 Changes - contractors
Government IR35 Changes - contractors
  1. Government IR35 changes
  2. Conservatives Promise to Contractors
  3. Conservative Government IR35 changes betrayal
  4. Contractors Forced to go PAYE

Government IR35 Changes

Chancellor Rishi Sunak confirmed in his Budget today that the Government IR35 changes in the private sector would go ahead. That is a huge blow to UK contractors- but not unexpected. Contractors pleas fell on deaf ears.

April 6th, when the Government IR35 changes are implemented in the private sector will see the death of contracting as we know it. Morale must be at rock bottom among contractors up and down the land.

Conservatives Promise to Contractors

Prior, to the election, after Labour, the Lib Dems and SNP said that they would review IR35, the Conservatives said that they would review IR35 too.

Contractors were pleased. However, it was another massive con on contractors by the Conservatives. They had history here as they had promised the PCG prior to the election that they would abolish IR35 in 2010. They did the opposite and strengthened it.

Conservative Government IR35 changes betrayal

Now, in the latest betrayal the review turned out to be just about how they would implement it as smoothly as possible. There was no real review of IR35.

It wasn’t even an independent review. And it changed nothing of consequence. The Government IR35 changes would go ahead.

The Budget was the last hope for contractors. Perhaps because of Brexit and he coronavirus they might postpone the implementation.

Not a hope.

The Government IR35 changes are going ahead.

Contractors Forced to go PAYE

And lots of contractors will be forced into umbrella companies and PAYE against their will.

Others will retire early or just sit on the bench till an outside IR35 contract comes up.

And the Government and HMRC think that contractors are just tax avoiders. And they think they are scamming the system.

What did Theresa May say?

She said “It is an unfair anomaly that a self employed person earning £100,000 a year pays less tax than an employee earning £100,000 a year. It is this ‘uncair anomaly’ that underpins every attack on contractors.

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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.

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    1. yes I’ll join rest ov them get free everything best way to go lie in my bed every day do nothing let government keep me, as they put me there

    2. We’re not all on £75000 per year. Would be nice if we were, but this has really damaged the haulage industry where many self employed drivers working through Ltd companies for different clients and agencies have now found themselves dumped by their clients, who understandably are unwilling to take any risks and like me are now scraping round for low paid jobs. This is likely to result in even more drivers leaving the already struggling industry for less responsible jobs for the same pay.


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