May 31st, 2019.

There are calls from contractor and freelancer representatives for the off-payroll (IR35) reforms, due to be applied to the private sector, to be stopped.

Many UK sole traders are making plans to address the impact of proposed off-payroll reforms (also known as IR35) – where contractors must pay employment taxes without the equivalent of employment rights – even though the legislation will not affect them.

Not only are 18% of sole traders making unnecessary preparations for when off-payroll reforms hit the private sector in April 2020, but 13% of limited company contractors said they will stop contracting as a direct result of the planned reforms. This would be equivalent to losing 78,000 people from the contracting workforce, based on estimates of there being 600k personal service companies in the UK, carried out by the Freelancer & Contractor Services Association (FCSA) which undertook the research with accounting software provider FreeAgent.

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