Search Results for: IR35

New IR35 rules for self-employed riddled with problems, says government committee

New IR35 rules for self-employed riddled with problems, says government committee

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A report into the government’s plan to introduce IR35 reforms to the private sector has concluded that it is so flawed that it should be delayed and reconsidered. The committee concluded the rules are “riddled” with problems and unfairness. The authors conclude that the Government has overlooked the potential impact on the wider labour market, including the so-called gig economy. The Committee also heard that many companies were already nervous about the rules and so making blanket status determinations and laying off contractors. More →

Accountants call for IR35 to be scrapped

Accountants call for IR35 to be scrapped

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Accountants are wary about the impact that the government’s IR35 off-payroll tax reforms will have on the UK’s contracting industry and would like to see them repealed altogether, a new survey claims. According to research by FreeAgent, an accounting software provider, 95 percent of UK accountants believe that the reforms will have a negative impact on the UK’s contracting industry when they are implemented in April this year and call for them to be scrapped.

• 84 percent call for private sector “off-payroll” reforms to be abolished
• 95 percent believe IR35 will negatively impact UK’s contracting industry More →

Third of freelancers plan to stop contracting in UK due to IR35

Third of freelancers plan to stop contracting in UK due to IR35

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IR35Nearly a third of freelancers are planning to stop contracting in the UK because the changes to IR35 due in the private sector in April, research has claimed. One in seven freelancers (13 percent) plan to find contracts abroad, 11 percent plan to stop working or retire early and 8 percent plan to move into employment, according to IPSE (the Association of Independent Professionals and the Self-Employed). Half of the freelancers surveyed also said they will only continue freelancing if they can find contracts to which the new off-payroll working rules do not apply. More →

IR35 pushes freelancer confidence to six-year low

IR35 pushes freelancer confidence to six-year low

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IR35Two surveys have highlighted continuing fears among freelancers about the changes to the IR35 rules due to take effect in April. The reforms will shift the responsibility for defining contractors’ tax status from the individual to the employer to crack down on so-called ‘disguised employment’, where off-payroll workers are able to pay less tax than employees. However, concerns have been raised that the rules could force organisations to bring genuine contractors and freelancers on to the payroll, reducing flexibility for both parties. More →

The culling of freelancers with IR35 is a really, really bad idea

The culling of freelancers with IR35 is a really, really bad idea

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IR35 and freelancersImagine a world with no freelancers, holiday cover workers, or people to help fill the hiring gaps on projects. With IR35 extending into the private sector, this could be a reality; and we should be worried that a skilled and flexible workforce of freelancers could soon be extinct. Instead of dealing with the headache of the new regulations, 20 percent of UK businesses said they plan to axe contract workers. Freelancers themselves might be worried about how the new iteration of IR35, due to come into force in April next year, will affect their ability to work, and hastily take on permanent positions. More →

Half of self-employed people do not know what IR35 is

Half of self-employed people do not know what IR35 is

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New research from FreeAgent conducted with 2000 self employed people in the UK, claims that more than half (57 percent) don’t know what IR35 is. The sets of tax legislation encompassed by IR35, designed to combat tax avoidance by workers and the firms hiring them, is unknown to over half of the people most affected by it – the self employed. The legislation, which has been heavily criticised by tax experts and the business community as being poorly conceived, badly implemented by HMRC and causing unnecessary costs and hardships for genuine small businesses, has not been well communicated to self employed people, the research reveals. Tax experts have predicted that IR35 could reduce a worker’s net income by up to 25 percent and Chancellor of the Exchequer, Sajid Javid, recently announced the Conservative Party’s plan to review IR35 as part of its manifesto. More →

One in five businesses plan to drop contractors because of IR35

One in five businesses plan to drop contractors because of IR35

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Companies are in danger of losing top talent due to lack of flexible working and IR35A fifth of of UK businesses say they are planning to axe contractors completely to ensure they are fully tax compliant ahead of the IR35 changes planned for next year, according to a survey from recruitment firm Harvey Nash. The 2019 Harvey Nash IR35 Sentiment Survey (registration) of 1,200 businesses and contractors claims to reveal the confusion that still reigns around IR35 legislation among both contractors and the businesses that rely on them. The findings suggest that 83 percent) of businesses believe IR35 will impact negatively on their industry. Meanwhile 60 percent of contractors say they have experienced increased anxiety, stressing or worrying about how the new rules will affect them. More →

Coronavirus crisis drives freelancer confidence to unimagined lows

Coronavirus crisis drives freelancer confidence to unimagined lows

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Freelancers’ confidence in their businesses and the wider economy has been driven to record lows by the Coronavirus crisis, according to research by IPSE (the Association of Independent Professionals and the Self-Employed) and PeoplePerHour, Europe’s largest freelance marketplace. Freelancers’ three month confidence in their businesses had already fallen to a six-year low last quarter because of concerns about the changes to IR35 tax regulations. More →

Will coronavirus mean the death of the office?

Will coronavirus mean the death of the office?

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Betteridge’s law of headlines declares that “Any headline that ends in a question mark can be answered by the word no”. And so I simultaneously ask and answer the question of whether the coronavirus pandemic will really lead to the death of the office. So it goes. Of course, I’m not the first person to raise the question over the last few weeks as the world adapts to the threat of the pandemic. But it’s worth reminding ourselves that the demise of the office has been predicted for at least a quarter of a century, although never in such circumstances. More →

Government launches “revolutionary” green transport consultation

Government launches “revolutionary” green transport consultation

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The government has launched a new intiative to test the introduction of green transport systems and also injected £90 million into funding three experimental  ‘future transport zones’ across the UK aimed at establishing whether smart and green technology can be adopted. The new transport zones in the West of England, Portsmouth and Southampton and the East Midlands will be used to test innovations in the movement of people and goods. One project will trial the use of drones for carrying medical supplies from clinics in the Isle of Wight to hospitals in the mainland. This should cut down the time spent moving supplies by ferry or road while speeding up diagnosis. More →

Move to freelancing improves quality of life

Move to freelancing improves quality of life

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freelancingNine in ten freelancers in the UK feel the move to freelancing has improved their quality of life, a survey has claimed. Almost half of those surveyed by Dinghy stated that the best thing about freelancing is the flexibility – the ability to work when, where and with whoever they want. On the downside, almost all respondents (98 percent) admitted checking emails and projects in their time off. Many felt they have to work above and beyond what is called for to make a good impression, with nearly a third saying they “overserve” all their clients by consistently overworking and undercharging. More →

Gig economy ruling threatens business model of Uber and others

Gig economy ruling threatens business model of Uber and others

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gig economyThe ongoing worldwide friction between legislators and firms operating in the “gig economy” was evident this week as a US judge denied Uber and Postmates a temporary reprieve from California’s new gig worker law. The ruling comes as a setback for both companies as the legislation has the potential to undermine their business models. More →

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