House of Lords Committee highlights IR35 flaws

(2 minutes to read)

The IPSE on the House of Lords Committee report: ‘It rightly highlights the inherent flaws in the government’s IR35 proposals and warns it off implementing the changes as they stand’.

The House of Lords Economic Affairs Finance Bill Sub-Committee has published a report on IR35, welcoming the deferral, as well as urging the government to use this time to rethink certain aspects of the legislation.

The Association of Independent Professionals and the Self-Employed has very much welcomed this recent report.

Andy Chamberlain, Director of Policy at IPSE, commented, “The report by the House of Lords Committee is a much-needed dose of sense in the IR35 fiasco. It rightly highlights the inherent flaws in the government’s IR35 proposals and warns it off implementing the changes as they stand. We could not agree more: it is clearly time for the government to rethink its entire approach to IR35.”

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Andy added, “IPSE gave evidence to the committee warning that the changes to IR35 would be a disaster and that many private sector companies were already scrapping their entire contractor workforces. It is excellent to see the committee heeded our warnings and is pressing them on the government.

“The contractor sector is already under immense strain because of the Coronavirus crisis and the pointed lack of government support for the majority of contractors who work through limited companies. The last thing this embattled sector needs now is the ill-conceived and destabilising changes to IR35. We urge the government to follow the advice of the Committee and the Taylor Review and instead of IR35, conduct a full taxation review to create a fair balance between tax, rights and risk.”

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