Pressure mounts on government over IR35

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Contractors are increasingly worried about working inside IR35, but it appears that no-one is heeding the call for contractors to be given employment rights.

A recent survey by Qdos Contractor showed that 86 percent of those independent workers who took part in the survey wanted employment rights if they were working inside IR35. Many contractors feel that if they are to pay the same tax as employees it is only right that they should also receive employment rights.

Statistics have also shown that there is an increasing trend amongst contractors to drive themselves even harder as they face growing financial difficulties. Thirty-eight percent of these had been subject to blanket inside IR35 decisions.

There have of course always been economic pressures to working independently but there is evidence to show that these pressures are being made worse by the IR35 changes. Many contractors admit to not taking off public holidays or working whilst they were ill.

Of course many might say that this is the downside of working independently – and 47 percent of contractors cite this as one of the most challenging aspects of being self-employed. However, as an additional 90,000 contractors have found themselves inside IR35 maybe it is time for the government to change the model and align IR35 status with employment status.

This is not a small problem as there has been a significant rise in the number of contractors who have wrongly found themselves inside IR35.