Contractor concerns about IR35 (Off-Payroll) rules being applied to the private sector have been aired during MP’s debate on the subject in the houses of Parliament.
Among the problems that were discussed was public sector non-compliance, the impact of the proposals on the mobility of workforces, challenges to HMRC’s Check Employment Status for Tax tool, and the need to support status in employment and tax law.
Dave Chaplin, CEO of ContractorCalculator, said: “We welcome the decision by MPs to stand up for the contracting sector and expose the issues and pitfalls of this ill-conceived policy in Westminster”.
Mr Chaplin went on to say: “debate is evidence that our IR35 campaign is gaining traction and that MPs are taking note. As we approach a critical juncture for the future of flexible working, we encourage all contractors who haven’t already done so to join our campaign and help prevent a disastrous change at the hands of the new Off-Payroll tax”.
Several MPs asserted that the government had failed to listen to warnings that have come from the public sector and instead were proposing to introduce near identical changes in the private sector.
Anneliese Dodds, MP, said that none of the prominent issues which had arisen in the public sector had been discussed when the private sector changes were in the consultation phase. Ged Killen, MP, said this could lead to unforeseen consequences. He said: “If we can’t get it right in the public sector, these issues are only going to be amplified in the private sector.”
An issue which could cause problems is the widespread non-compliance amongst hiring organisations.