In May, the newly formed coalition government wasted no time in making all the right noises regarding the stress inducing IR35 ‘disguised employment’ legislation. Through a combination of squawks, growls and shrill cries they promised to “review IR35, as part of a wholesale review of all small business taxation, and seek to replace it with simpler measures…”
The question is: can we expect any statements of substance regarding the legislation in the upcoming emergency budget?
Martin Hesketh, managing director of Brookson, the contractor accountancy service, has given his sober views on what we can expect from Chancellor George Osbourne:
“While it seems unlikely that such a drastic decision to abolish IR35 completely will be made in the emergency Budget announcement, the industry can expect the Government to commit to a consultation period to review IR35.”
But with hope comes warning:
“It is worth considering though, the risks involved if the Government does make the wrong decision concerning IR35. For example if the time isn’t taken to properly understand the self employed, freelance workforce then this could lead to another flawed and inconsistent piece of legislation being drafted.”
On a separate point, Martin makes the point that freelancers and contractors could benefit from public sector cuts. With fixed-term employees being forcefully reduced in areas like health and social care, the door is likely to be open for contractors to step in and take up the slack.
With freelance workers playing such an important role in helping businesses and public services adapt to the harsh and unpredictable economic environment, surely it’s time they were assisted with the help of simpler legislation…
