Monday, 27 April 2020

Government Urged To Completely Rethink IR35


The government has been urged to “completely rethink” its controversial off-payroll working rules after a Lords select committee found the system to be unfair on both contractors and businesses.

A 67-page report from the House of Lords economic affairs finance bill sub-committee, published today (April 27), said the extension of the off-payroll working rules — commonly known as IR35 — put too great a burden on businesses and was unfair on contractors.

Lord Forsyth of Drumlean, chair of the committee, is quoted by the FT:
Our inquiry found these rules to be riddled with problems, unfairnesses, and unintended consequences. 

The potential impact of the rules on the wider labour market, particularly the gig economy, has been overlooked by the government. It must devote time to analysing all of this. A wholesale reform of IR35 is required.”

Tax does have to be taxing.

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