The public sector IR35 reforms have had a devastating impact: damaging projects, intensifying skills shortages, and considerably reducing the earnings of contractors. The real danger is that, without your help, these rules could soon be extended into the private sector.
The taxman ignored the warnings issued by key contracting stakeholders when deciding to press ahead with the public sector changes. To avoid further catastrophic mistakes MPs need to be informed about the dangers of a private sector roll out.
Using the draft letter below, supported by new Off-Payroll IR35 factsheet published to counter HMRC’s misleading rhetoric, we are asking you to lobby your MP against any further roll out of the Off-Payroll reforms to the private sector. It’s the best chance we have of preventing further collateral damage.
Key points:
- No-one, other than time travellers from the future, can be certain whether the current reforms have increased tax yield.
- Unlawful blanket assessments are rife, particularly in the NHS.
- Public sector bodies have found it harder to hire and retain the best contractors.
- Public sector costs have increased, resulting in less services being delivered for the same money.
- HMRC's CEST tool is a failure. It's not only inaccurate, the majority aren't even using it.
- Non-compliance is widespread and moves towards tax avoidance is huge.
5 strong reasons why the reforms would be devastating to the private sector
- The UK labour market would lose more critical flexibility
- The UK would struggle to attract and retain talent
- Hiring flexible workers would be costlier for clients
- Critical projects would suffer
- The red tape cost to all businesses would increase
There is every reason to suspect that the private sector would suffer if the reforms are expanded.
How to contact your MP
To find your MP use the Parliament service:
Search for your MP – click here
Enter your postcode, find your MP and their email address.
Email them directly, and feel free to use the letter templates from our campaign page combined with our factsheet. If you can add some of your own words and experiences it will strengthen your arguments. They are more likely to take note if they understand the damages of these reforms and how it affects their constituents.