Wednesday, July 15, 2020

Government falls short in preparing firms for IR35 changes, says IPSE

The government has not done enough to prepare businesses and the self-employed for the changes to IR35 coming into force next April, the Association of Independent Professionals and the Self-Employed has warned.

The warning comes in response to research by Hays, which shows a third of private sector organisations that engage temporary contractors are unaware of the changes to IR35 next April. It also found less than half (43%) of medium and large private sector organisations who engage contractors have begun preparing for the changes.

Of those who have heard about the changes to IR35, 68 per cent believe the biggest risk is an increase in costs, while 56 per cent said they were worried about losing key talent. 46 per cent also said they believed the changes would make it harder to engage temporary contractors.

Andy Chamberlain, Deputy Director of Policy at the Association, said: “It is clear the government has done nowhere near enough to prepare businesses and contractors for the changes to IR35 next April. Not only do a third not know anything about them; those that do are extremely concerned – and with good cause.

“The nightmarish complexity of IR35 will result in significant extra administrative burden and cost for hiring organisations. Compliance with the rules is clearly going to be an uphill struggle for businesses across the UK.

“Hirers must not, however, be tempted to do as several banks have and either scrap their contractors or force them onto the payroll. This is a hugely damaging and short-term step that will stifle their flexibility and come back to haunt them later.

“The changes to IR35 caused chaos in the public sector in 2017 and they are set to do even more harm to an under-prepared and deeply worried private sector. IPSE is calling on the government to urgently halt and rethink these plans.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Lupton Fawcett strengthens York office

Yorkshire law firm Lupton Fawcett has strengthened its York office with two new appointments. Jaime Dodd has joined as a senior solicitor in the residential...

Gelder Charity achieves Charitable Trust status

The charity arm of Lincolnshire-based construction company, Gelder Group, has achieved Charitable Trust status. Over the course of 32 years in business, Gelder Group has...

£176m still to be distributed from Government Small Business Grant System in Yorkshire

Business rates experts at Colliers International are urging the Government to revisit its grant scheme for businesses - set up to help with the...

Job creating site wins outline planning approval

Stirlin has secured outline planning approval from West Lindsey District Council for its new development: Enterprise West Lindsey. Working in partnership with Castle Square Securities...

CEMEX to mothball Lincolnshire cement plant

Following a period of consultation with Employee Representatives and Unite the Union, CEMEX has today (14 July) confirmed it will mothball its South Ferriby...

Production ceases as Liversedge bed company reports COVID-19 outbreak

A Liversedge bed company has reported a Coronavirus outbreak at its factory after eight members of staff tested positive for the disease. High Grove Beds...

Related news

Lupton Fawcett strengthens York office

Yorkshire law firm Lupton Fawcett has strengthened its York office with two new appointments. Jaime Dodd has joined as a senior solicitor in the residential...

Gelder Charity achieves Charitable Trust status

The charity arm of Lincolnshire-based construction company, Gelder Group, has achieved Charitable Trust status. Over the course of 32 years in business, Gelder Group has...

£176m still to be distributed from Government Small Business Grant System in Yorkshire

Business rates experts at Colliers International are urging the Government to revisit its grant scheme for businesses - set up to help with the...

Job creating site wins outline planning approval

Stirlin has secured outline planning approval from West Lindsey District Council for its new development: Enterprise West Lindsey. Working in partnership with Castle Square Securities...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close