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.

Sponsored by ContractorFinancials, 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, Tony Harris of ContractorFinancials 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 Harris, “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.

Tony Harris, ContractorFinancials

   
Tony Harris

Tony Harris

Managing Director

Contractor Financials

Tony Harris is MD of ContractorFinancials, recognised as the specialist independent financial adviser for Contractors.

ContractorFinancials offer jargon free and timely mortgage, pension, insurance and investment solutions tailored to the unique needs of Contractors. Read Full Profile...

View all our experts

   

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

Alliance Accountants

Published: Monday, November 02, 2009

© 2014 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

Contractors may see simpler expenses rules from consultation, but not until post-2015 Contractors may see simpler expenses rules from consultation, but not until post-2015

Contractors can anticipate simpler rules on expenses and subsistence following a new Treasury consultation, but changes won’t happen until after 2015.

Contractors may benefit from OTS employment status review, which could affect IR35 Contractors may benefit from OTS employment status review, which could affect IR35

Contractors could benefit from the findings of a review of employment status initiated by the Office of Tax Simplification, due out for Budget 2015.

Extracting profits tax efficiently from a limited company Extracting profits tax efficiently from a limited company

Contractors can choose from a range of strategies to extract profits tax efficiently from their limited company, explains Abbott Moore’s James Abbott.

IR35 Odds - The chances of being caught are about 60,000 to 1 IR35 Odds - The chances of being caught are about 60,000 to 1

Contractors are more likely to find a valuable object on the Antiques Roadshow than to lose an IR35 case to HMRC.


  
  

Twitter

  • Contractors may see simpler expenses rules from consultation, but not until post-2015 http://t.co/WqBuhPYL7b

    16 hours ago

  • HMRC wins another tribunal case against NT Advisers over tax avoidance schemes https://t.co/tddUzew3Ye

    16 hours ago

  • HM Treasury releases Travel & subsistence review consultation, proposing simpler rules for employees & employers https://t.co/uut6sGnHsO

    17 hours ago

  • Contractors may benefit from OTS employment status review, which could affect IR35 http://t.co/a7CVfCKn1A

    19 hours ago

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractor Angels Orange and Gold Accountancy Limited IR35 Test Clever Accounts Accountants Checklist Alliance Accountants
  
  

Contractor solutions

InTouch Accounting

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

Parasol

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

Contractor Angels

More than just an Umbrella. Retain up to 90% of your earnings.

Contractor Accountant

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

Clever Accounts

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

Need an accountant?

Comprehensive service for £59 per month. Call now for a FREE consultation.

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

  

The UK's leading contractor site. Independently audited traffic (ABC) – 131,456 monthly unique visitors.