IR35 special report: 10 years that shook the world of UK contractors

IR35 Test

Among the sometimes surprising facts to come out of ContractorCalculator’s new IR35 special report on the past, present and future of IR35 is that the controversial tax law has actually brought some benefits to UK contractors.

In recognition of the fact that IR35 has helped shape modern contracting, for better or worse, ContractorCalculator has commissioned a special report to mark the 10th anniversary of IR35. It contains expert analysis, a historical perspective, essential guidance for contractors, and a look at what the future might hold. This 36 page PDF report can be downloaded here.

The report includes specially commissioned articles with unique insights from some of the contracting services sector’s biggest names. ContractorCalculator CEO Dave Chaplin launched ContractorCalculator, then ir35calc.co.uk, ten years ago this month. So, he explains, he commissioned the Special Report to send a strong message that the contracting sector has matured and strengthened despite IR35. “Not only that,” says Chaplin, “but as the core component of UK PLC’s flexible workforce, contractors have the potential to lift the economy out of recession. The UK is lagging behind its global economic peers by remaining in recession,” explains Chaplin, “and it is the massive burden of business taxes and regulation, like IR35, that is now holding back the UK’s economic growth.”

It is the massive burden of business taxes and regulation, like IR35, that is now holding back the UK's economic growth.

Dave Chaplin, CEO - ContractorCalculator

But IR35 hasn’t all been bad news for contractors. As Chaplin points out, the Special Report highlights that IR35 has had a silver lining. “Before IR35, contractors did not have representation or any sense of group identity,” he says. “But when the government introduced this poorly thought-through and appallingly implemented piece of legislation, with no genuine consultation or impact assessment, contractors for the first time banded together to fight the assault on their livelihoods.”

In the report, 10 of the UK contracting sector’s foremost service suppliers answer ten questions about the history, impact and future of IR35, with often surprising results. For example, an expert independent financial adviser (IFA) explains that: "IR35 had some unlikely positive side effects, as many contractors have now built-up significant pension nest eggs as a result. “But”, says the IFA expert, “when the developed world was depending on contractors from the IT contracting sector to pull it back from the precipice that was the millennium bug, the all-out assault by the Treasury and HMRC was being planned.” And that assault was IR35.

IR35 had some unlikely positive side effects, as many contractors have now built-up significant pension nest eggs as a result.

IFA expert

Although the risks of IR35 to contractors’ financial health is better understood now than ten years ago, and a specialist service sector has risen to the challenge of supporting contractors, HMRC has been granted increased powers that will impact on contractors’ livelihoods. “The ContractorCalculator IR35 Special Report is designed to remind us of how damaging bad legislation can be,” says Chaplin, “and as a tool to educate current and future legislators about contractors’ needs. IR35 is likely to remain with us in one form or another for some years,” he says. “But contractors will always show their ability to overcome any obstacle, provide creative solutions and thrive against all odds!”

Download Free PDF

Published: Monday, November 02, 2009

© 2015 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.

Inni Accounts


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

Contractor numbers grow to 1.88m: IPSE research confirms IPro increase is structural Contractor numbers grow to 1.88m: IPSE research confirms IPro increase is structural

Contractor numbers grew to 1.88m in 2014, and it is clear the growth is structural, according to IPSE-commissioned research by Kingston University.

ContractorCalculator: Contracting news in brief – 24/Apr/2015 ContractorCalculator: Contracting news in brief – 24/Apr/2015

News this week covers: Scottish contract market softens; contractors paid more than permies; contractor numbers increase; and new HMRC guidance.

Contracting pays: over two thirds of clients pay contractors more than permies Contracting pays: over two thirds of clients pay contractors more than permies

Contracting clients choose to hire contractors for short-term access to strategic skills, with two thirds paying contractors more than employees.

Contractor Doctor: Can I claim lunch expenses when walking to work? Contractor Doctor: Can I claim lunch expenses when walking to work?

There are no HMRC rules that prevent a contractor from claiming subsistence expenses just because they walk to work.


  
  

Twitter

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook IR35 Report - 15 Years IR35 Test Clever Accounts Accountants Checklist CFSC Left Sky
  
  

Contractor solutions

Clever Accounts

Complete contractor accounting service. 24/7 online access. £69 pm!

Contractor Angels

Take home over 88% from your income. 100% compliant. Calculate now!

InTouch Accounting

Perfect mix of technology & personal service for only £92 per month.

Contractor Accountant

Free consultation, incorporation and IR35 reviews. Find out more…

Parasol

The UK’s largest employment organisation - 0% risk, 100% compliance

NA D J Colom Accountants Bedouin Group Mortgages NewsNow
  
Caprica Accountants Contractor Insurance Life Insurance

  

The UK's leading contractor site. Independently audited traffic (ABC) – 124,827 monthly unique visitors.