One year after new IR35 rule changes were introduced in the private sector, research from the Association of Independent Professionals and the Self-Employed (IPSE) suggests they have harmed UK businesses.
New research from the Association of Independent Professionals and the Self-Employed (IPSE) suggests that contractors are lowering their day rates and working more to mitigate the impact of coronavirus disruption.
The study also points to rising concerns about the government’s tax policy, including upcoming changes to IR35 in the private sector.
The Liberal Democrats have become the first political party to make a firm commitment to contractors ahead of the December election.
After seeing a preview of the Lib Dem manifesto, IPSE said that it included a number of policies designed to help self-employed workers, including a promise to review IR35 changes due to take effect next year.
Boris Johnson has won the tentative support of contractor and freelancer organisations, but experts have urged the new PM to improve the economy and support the self-employed.
The Association of Independent Professionals and the Self-Employed (IPSE) called on the Brexit-supporting leader to keep the economy flexible and competitive in the run up to Britain’s exit from the EU.
In a statement, they called on Mr Johnson to reform the tax system and scrap damaging changes to IR35, reduce the retrospective nature of the loan charge and help stamp out late payments among other policies.
Freelancers are feeling the latest inflation rise more than employees, according to the Association for Independent Professionals and the Self-Employed (IPSE).
The warning for freelancers came after the Office for National Statistics revealed that inflation rose by a higher than expected 2.7% in August.
Measured by the Consumer Prices Index (CPI), this was the highest monthly price increase in six months.
Jordan Marshall, IPSE’s Policy Development Manager said: “Freelancers will be especially hard hit by this jump in inflation not only because, unlike employees, they pick up their own business costs, but also because they travel more to win and work on different contracts. They will particularly feel the effect of the 13.5 per cent jump in air fares, because many of them take up contracts overseas and travel long distances in the UK.
New research shows that more than a third of contractors have left self-employment because of changes to off-payroll working (IR35) rules.
A survey published by the Association of Independent Professionals and the Self-Employed (IPSE) shows that 35% of contractors no longer work for themselves.
UK contractors’ average income dropped by 25% in the second quarter of 2020 according to the Freelancer Confidence Index, run by contractor interest group IPSE and PeoplePerHour.
The three-month period, which includes the height of the UK’s national coronavirus lockdown, saw a record fall in the average number of weeks worked by contractors in a quarter. In the 13 weeks between March and June, the average freelancer went five-and-a-half weeks without work.
A sense of panic and alarm spread rapidly through the wider contracting community when HMRC sent IR35 letters to more than a thousand GlaxoSmithKline (GSK) freelancers and contractors last week. But this is just a ‘taste of things to come’ when IR35 changes are extended to the private sector in April 2020, according to a contractor interest group.
Brexit day is fast approaching and there is little certainty over how the negotiations will turn out.
Whatever happens, Brexit is likely to impact contractors in the UK. There may be some benefits in the short and long term, but many contractors are also likely to face some restrictions on their work.
In this blog post, we investigate the most likely Brexit outcomes and how they will affect contractors in the UK.
As the government consults on plans to extend IR35 rules to the private sector, self-employment organisation IPSE claims that the changes could ‘strangle’ contractor living standards.
IPSE claims that the ‘inhibiting, anti-business’ policy could cost contractors an average of £14,000 per year in lost income.