IR35 and the private sector - don’t say you weren’t warned…
Posted on 23rd May 2018
In case you haven’t seen it, the consultation on introducing IR35 to the private sector was launched at the tail end of last week. A number of articles alerted us, but whether we like it or not it’s now underway and we can only say that we are as sceptical as most other commentators. Was it not the case that we were initially assured by government that this was not going to happen and it was only the public sector that would be affected by IR35?
The consultation will last until 11:45pm on August 10th 2018. There will then be a Government response to feedback later in the year. If you want to read the consultation document, it’s available at this link. The majority of IT industry commentators are of the opinion that the introduction of IR35 into the public sector has been, at best, not without its problems, and at worse, chaotic in the extreme. However, with a reported “windfall” of over £400M to the Treasury via HMRC, and a hope that by introducing this to the private sector there is a further £1.2bn a year to be had by 2023 (as a result of people getting the rules wrong and incorrectly paying tax as if they were self-employed), you can see why government might be keen on making this change. Moreover, the consultation document states that “in 90% of cases within the private sector, the IR35 rules are not applied correctly.” In other words, it’s going to happen.
That said, it shouldn’t happen without those potentially affected having their say. That’s what a consultation is for after all. Can I suggest that if you have strong feelings on this then you make them known? We certainly will be doing so at Be-IT.
Nikola Kelly, MD, Be-IT
Posted in News, Recruitment News
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