Stuart Gentle Publisher at Onrec

IR35 tax reform to go ahead in 2021 - Why should the government rethink this?

Comment from Dean Sadler, CEO and Founder at TribePad

“Let’s be honest - it’s time politicians created meaningful solutions to problems, not soundbites. Self-employed contractors bring a significant amount to the table, with their constant upskilling and agile approach to getting stuff done. But they are facing significant threats and stress due to the pandemic. IR35 will make their lives even worse - something the government hasn't taken into consideration with refusing to scrap the change and go ahead with the reform in April 2021.

The government should simplify the tax rule book instead of making it more complex as IR35 only causes loopholes. Because of this, the self-employed will now be looking for any extra support and will undoubtedly increase fees to make work worthwhile - as well as take precautions to ensure that IR35 does not apply to them.

IR35 is a mechanism that’s designed to close the loophole, but what it actually means is less self-employed and more full-time employees across the UK. But businesses need a contingent workforce, especially as we currently face the unknown. With many businesses unable to afford immediate full-time staff, the self-employed will remain an important asset for businesses looking to bounce back after the pandemic.

If the government had any sense, they would rethink their IR35 strategy as now is not the time to make matters worse for the UK job market.”