Sajid Javid IR35 Contractor Promise – Will He Keep It?

Sajid Javid IR35 Contractor Promise
Sajid Javid IR35 Contractor Promise

Sajid Javid IR35 Contractor Promise

The Sajid Javid IR35 contractor promise was to repeal IR35. It seems highly unlikely that he would do this now when he has to find lots of money to fund Boris Johnson’s spending promises. He has said that there will be 21,000 more police and lots of money for the NHS.

But what if Sajid Javid is a man of his word? Could he really abolish IR35, or next best, halt the IR35 reforms in the private sector due in April 2020. He has a Budget coming up. Freelancers will be awaiting that with anticipation.

Questions to Ask About the Sajid Javid IR35 Contractor Promise

  • From what sort of background is Chancellor Sajid Javid?
  • What has he said about IR35 previously?
  • What sort of Chancellor will he be?
  • Where will he get the money for Boris Johnson’s spending promises?
  • Could we see the Sajid Javid IR35 Contractor promise met?

From What Sort of Background is Sajid Javid

Sajid Javid is from a banking background. He made his way up the ranks to become Managing Director of Deutsche Bank. The big banks traditionally use lots of contractors. Many companies say that their computer systems are their businesses. With the big banks that certainly is true. Sajid Javid would be well acquainted with using contractors. He would know the importance of a flexible workforce.

What Has He Said About IR35 Previously

A number of years ago he called on the Government to “repeal the silly IR35 tax.” He said he wanted to make IR35 fairer and simpler for contractors. There has been an echo of that recently when he said that he wanted to make the tax system simpler. He is going to start that process in his Autumn budget. Can contractors dare believe that he will take some kind of action over IR35?

What Sort of Chancellor Will He Be

Well, he has given some very interesting clues. He does want the tax system to be fairer and he doesn’t like IR35. But will he do anything about it? After all he has to fund Boris Johnson’s promises.

This is where it gets very interesting. He told The Times “I think taxes should be efficient. Generally I want to see lower taxes, but at a level that is going to pay for the public services.”

Where Will he Get the Money for Boris Johnson’s Spending Promises

So, where is he going to get the money then for Boris Johnson’s giveaway election Budget? He said he is thinking of making changes to the Government’s long term plan of eliminating the deficit by the mid 2020s. The next thing he said was very, very interesting and a complete reversal of the last two Prime Ministers and Chancellors austerity policies.

He said “It is obvious to me that when you’ve got some of the lowest rates on government debt this country has ever seen I wouldn’t be doing my job if I wasn’t thinking seriously about how do we use that opportunity.”


That’s very different. That’s Keynesian economics where in a downturn a Government uses low interest rates to stimulate the economy by borrowing money at those low rates for infrastructure improvements etc.

Could We See the Sajid Javid IR35 Contractor Promise Met

So, if he borrows the money for Boris Johnson’s spending plans could he still then make big changes to IR35 or its reforms? Yes, he could still make those changes.

One spanner in he works would be a no-deal Brexit. He said the country may need “a significant economic package as a response”. So, some kind of deal over Brexit would be good for contractors as he could keep the Sajid Javid IR35 contractor promise and “repeal the silly IR35 tax”.

But will he?

We’ll know more in the autumn.

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