Contractors IR35 Budget Petition
There’s a new contractors IR35 budget petition circulating. It seeks to stop Theresa May’s Government from rolling out the changes she made in the public sector in April to the private sector next April.
There were budget leaks to the press in the form of the Times and Financial Times saying that they will do just that.
The budget will take place on November 22nd.
Private Sector Contractors
This is very bad news for private sector contractors.
The Government changed the IR35 rules in the public sector in April 2017 so that departments hiring contractors would decide their IR35 status rather than the contractors themselves.
Whoever, pays the contractors, usually the agency, would be responsible for extracting PAYE tax and national insurance before paying the contractor.
Contractor Tax Bills Doubled
When they rolled it out for public sector workers some locums told us that their income fell by 30%.
IT Contractors told us that their tax bill had doubled.
Some Government departments like NHS Trusts, the MoD and HMRC decided that they would no longer use contractors using limited companies.
This was to be on the safe side as the departments would have to pay the tax, interest and penalties of the contractor if the department got it wrong.
Most Contractors Fail New HMRC IR35 Test
An agency told us that 60% of their contractors failed the new HMRC online IR35 Employment status test which departments now use to determine IR35 status.
That’s even though this test has no basis in law. The law hasn’t changed.
This will be a disaster for contractors and contracting.
It will hit the private sector’s flexible workforce.
It will be a lot less worthwhile being a contractor after April 2018.
However, there is still hope.
Chancellor’s Budget leak on Contractors
Chancellors sometimes leak items that they propose to have in their budgets to test the waters.
They want to see what sort of a reaction these changes would have if they introduced them.
They want to see how the public would take it.
So, the games not up here.
Contractors Group IPSE
Contractors group IPSE did their usual and rushed out a press release condemning it.
That’s par for the course.
However, IPSE press releases have no great history of success.
Raising Contractors IR35 Budget Petition
So, a contractor has decided to raise a contractors IR35 budget petition to the UK Parliament which he wants contractors to sign to show Theresa May and Philip Hammond their opposition to this.
If it gets 10,000 signatures it will be brought to the Prime Minister’s attention. If it gets 100,000 signatures it will be debated in Parliament.
So, he’s asking contractors and their relatives and friends to sign the contractors IR35 budget petition.
It’s here:-
Contractors Petition to Stop IR35 Budget Changes in Private Sector
Please sign the petition and pass this article on to other contractors.
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