Member Article

IR35 - Government Needs to End This Confusing Legislation Now

“I simply cannot understand how the HMRC thinks it is reasonable to tax contractors as if they are full time employees when they don’t receive any of the benefits, such as pensions, sick pay, holiday pay, etc.,” said Mark Dexter, CEO of KDR Recruitment.

“The implementation of IR35 from April 6, 2020, will mean contractors paying employer’s National Insurance, as well as employee’s National Insurance, which in effect means they are being asked to work as highly-taxed zero hours workers.

“I understand the desire of the HMRC to tax long term contractors who are part and parcel of an organisation more fairly, but I struggle to see how this can be done while denying them basic employment rights.

“Our economy is undergoing a number of severe threats right now, from Brexit and Coronavirus. We don’t need any more. The implementation of IR35 will see contractors pushing their rates up to cover their additional costs and potentially see the best people moving overseas to take up jobs where this legislation doesn’t apply.

“At a time when the Government is talking about measures to help businesses through a difficult period the best thing they could do would be to call an end to this confusing and ill-thought-out legislation.”

This was posted in Bdaily's Members' News section by Heather Astbury .