IR35 Question
IR35 Question

I raised concerns about the impact of the IR35 off-payroll tax on contractors around the country in last week’s adjournment debate.

The off-payroll tax is currently set to be introduced in April. An estimated 150,000 contractors across the UK will be affected by the changes and lose up to a quarter of their pay. Thousands of workers will be unfairly taxed as employees whilst having no employment benefits, including sickness pay, holiday pay and maternity or paternity rights.

Speaking in the debate this week, I said: “There are huge concerns about what the IR35 off-payroll tax could mean for contractors. During the general election, the Chancellor promised a review of this legislation, but instead the Government have decided to go ahead with the off-payroll tax and have announced a consultation on the implementation of the reforms only. Ministers need to listen to contractors now, which means pausing the process and undertaking a proper review.”

Under the IR35 roll-out, thousands of workers across the country will be unfairly taxed as employees with no employment benefits. Contractors rightly feel that the Government is not engaging with them about how they will be affected by these changes.


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