SNP IR35 Policy on Contractors
Contractors voting in he election are keen to find out the SNP IR35 policy.
Nicola Sturgeon and the Scottish National Party have long been against IR35, and Alex Salmond before her. They saw the problems from implementing IR35 in the public sector.
Now, they want the Conservative Government to hold off from implementing the IR35 changes in the private sector till contractors concerns are addressed.
Among those concerns are the Government taxing them as employees but not giving them the benefits. The Matthew Taylor Report recommended that Dependent Contractors should get those benefits. However, the Government dropped that part of his recommendations.
Contractors Questions on the SNP IR35 Policy
- Are the Scottish National Party (SNP) for or against IR35?
- How did the SNP View Subsistence Expenses for Umbrella Company Contractors
- What is the current SNP IR35 policy?
- Why do the SNP believe that IR35 is unfair to contractors?
- Have the SNP warned the Conservative government about IR35?
- What is the current SNP IR35 Policy towards contractors?
Are the Scottish National Party (SNP) for or against IR35
The SNP said a few years back:-
“We recognise the fundamental problems with the tax measure. Primarily we see it as discriminating in favour of large consultancies.
“This could have a serious long-term impact on the Scottish economy by discouraging participation in the IT industry and knowledge-based industries. These are the very industries this Government say they are so keen to promote.”
They continued ‘We are very sympathetic to its (IR35) repeal. We have particularly concerns about IT contractors losing the rights of staff members whilst still asking them to make the same contributions.’
How did the SNP View Subsistence Expenses for Umbrella Company Contractors
They were very much against the Tories taking away umbrella companies right to offset travel and subsistence expenses against tax.
An SNP spokesman cited the example of offshore oil and gas contractors on North Sea oil rigs who would have to fly to Aberdeen to work there. Now, they would have to pay their expenses for their plane journeys getting there, which is unfair.
What is the Current SNP IR35policy
Here is the current SNP IR35 policy as expressed earlier in 2019 in a debate in Parliament. According to Drew Hendry, the Shadow SNP spokesman on Business:-
“The SNP has expressed concerns about the extension of IR35 since it was proposed in 2017.
“The UK Government must pay close attention to their own technical review and rule out extending IR35 rules until contractors’ concerns have been addressed.
“The extension was proposed through the Finance Act 2017, and since then the SNP concern has been about the key effect on contractors supplying public sector bodies.
Why do the SNP believe that IR35 is unfair to contractors
“It is only right for such contractors to pay their fair share of tax, but they have been left with an unfairly high level of bureaucracy, making it even more difficult for them to play their flexible role within the economy, as those in the sector have confirmed.
“Experts have expressed concerns that IR35 does not even achieve its stated aim of equalising tax between those in its scope and employees.
“IR35 has also made things more difficult for public sector organisations in rural communities, something I know a lot about, being a Highland MP. In rural areas, we often rely on contractors to fill vacancies and to employ key staff—teachers, doctors, nurses and such key people in our communities—so we have great concerns about the further impact on contractors if IR35 is extended for the private sector in April 2020, as proposed.
Have the SNP warned the Conservative government about IR35
“We have expressed such concerns repeatedly. Indeed, my hon. Friend Kirsty Blackman first warned the Chancellor about the risks of the expansion of IR35 during the April 2017 finance debate.
“The UK Government failed to listen then and, when we raised it again, later in 2017 and in 2018.
“Here we are in 2019, once again asking the Minister to listen. Will this be the day when ears are unblocked? I hope so.
“Will this be the day when the message gets through? Let us hope that as well. The UK Government should use the 2019 Budget and Finance Bill to address IR35’s negative impact on contracted staff and our public services.
What is the current SNP IR35 Policy towards contractors
” In conclusion, IR35 is not in a state to be further expanded at the moment. That has been clear throughout, in the comments by Members in this debate and from what we have heard about those who have experienced the effects, such as contractors and the people trying to deal with IR35 in our public services.
“It cannot be right for the Government to steam ahead without taking that into consideration.”
So, here you have the SNP IR35 policy. We will publish a further article comparing it to the IR35 policies of the other parties.
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