March 16, 2021

Half of freelancers planning to stop contracting in the UK after IR35 reforms

by Jayne Smith • Business, News, Working lives

Half (50 percent) of freelancers are planning to stop contracting in the UK after the changes to IR35 come into effect in April – unless they can get contracts unaffected by the changes – according to new research by IPSE (the Association of Independent Professionals and the Self-Employed). Instead, they are planning to seek contracts abroad (24 percent), stop working altogether (12 percent), seek an employed role (17 percent) or retire within the next year (11 percent). More →

April 27, 2020

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

by Jayne Smith • News

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 →

March 3, 2020

Accountants call for IR35 to be scrapped

by Jayne Smith • Business, News

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the government’s IR35 off-payroll tax reforms will have on the UK’s contracting industry and would like to see them repealed altogether, a new survey claims.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 →

February 13, 2020

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

by Jackie Le Poidevin • Flexible working, News

Nearly 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 →

February 7, 2020

IR35 pushes freelancer confidence to six-year low

by Jackie Le Poidevin • Flexible working, News

Two 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 →

January 7, 2020

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

by Dean Sadler • Comment, Flexible working

Imagine 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 →

December 4, 2019

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

by Neil Franklin • Legal news, News

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 →

November 15, 2019

One in five businesses plan to drop contractors because of IR35

by Neil Franklin • Business, News

A 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 →

March 14, 2024

Third of businesses say they are more likely to hire contractors this year

by Jayne Smith • News, Workplace

Just under a third (32 percent) of UK employers plan to hire more contract workers this year, according to a new report [registration] from recruitment company Robert Walters. Over a quarter (29 percent) report being encouraged to do so by the upcoming IR35 offset rule – coming into effect in early April. Not only that, but a January report from KPMG & REC found that demand for temporary professionals continued to increase softly across the private sector towards the end of 2023 – boding well for this year’s hiring. More →

May 17, 2021

Over a quarter of freelance businesses are back to pre-pandemic levels

by Jayne Smith • Business, News

New research from IPSE (the Association of Independent Professionals and the Self-Employed) claims almost a quarter of freelancers (24 percent) report their businesses returning to pre-pandemic levels, while nearly a third (29 percent) predict the easing of restrictions will give an added boost to their businesses. A fifth (19 percent) said their businesses had been largely unaffected by the pandemic. More →

August 11, 2020

Freelancer income fell by a quarter during lockdown

by Jayne Smith • News

In the second quarter of 2020, freelancers’ average income dropped by 25 percent, according to the latest freelancer Confidence Index by IPSE (the Association of Independent Professionals and the Self-Employed). According to IPSE, the drop in income was driven by a record fall in the average number of weeks freelancers worked this quarter. Between March and June, the average freelancer went 5.5 weeks out of 13 without work. Combined with a 3 percent fall in freelancers’ average day rates, this led to average quarterly earnings declining by 25 percent from £20,821 in Q1 2020 to £15,709 in Q2 2020. More →

May 7, 2020

Coronavirus crisis drives freelancer confidence to unimagined lows

by Neil Franklin • News

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 →