Draft finance bill could damage British innovation, says IPSE

(3 minutes to read)

The Association of Independent Professionals and the Self-Employed (IPSE) believe the IR35 draft finance bill results could seriously damage British innovation.

With the publication of the draft finance bill, many experts are concerned that the proposed IR35 changes to the private sector could have a detrimental impact on businesses and contractors alike.

These changes are set to roll out from April 2020.

IPSE’s CEO Chris Bryce, said, “Recent research shows how crucial freelancers are for companies to create, innovate, improve productivity and compete on the global stage.

“Extending these rules will put a huge extra burden on organisations which depend on the use of highly-skilled flexible workers to help them succeed.

“The impact on freelancers will be no less serious. Many now risk being pushed into quasi-employment against their will. They’ll be paying into the system like employees but will be denied any of the protections which go with employment. This fundamentally undermines the principle of no taxation without rights that many people understand as the basic fairness in our system.

“We can only hope that the incoming Prime Minister will recognise this measure for what it is, and scrap it altogether. But now we have finally seen the draft legislation the government must at the very least delay its introduction to give everyone time to work out this chaotic mess.”

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Commenting on the developments, FCSA’s Chief Executive Julia Kermode said, “In spite of all the warnings about the disastrous impact that the Off-Payroll reforms have had in the public sector today we have had confirmation that the government will be extending the off-payroll rules to the private sector come April 2020. However, I am enraged and shocked to read that they will be introducing a statutory client led status disagreement process which will place significant unfair burden on clients.

“They also state that they don’t expect any significant economic impact as a result of rolling out the new reforms but FCSA has recently conducted research that 13% of PSCs will quit contracting. They claim to have listened to stakeholders concerns but today’s bill simply highlights that they have simply paid lip service to listening.

“The reforms will be devastating for the UK economy and I would urge our next new Prime Minister to take a sensible look and a sensible view before pressing ahead with these damaging proposals. The UK is in a delicate state right now and these reforms will do little to alleviate the UK’s problems.”

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