November Budget - Stop Public sector IR35 rules coming into the Private sector

[jamesbrown]

TBH, I don't think writing to MP's is the way to tackle this at all, they simply do not grasp the nuances.

Aside from this and lobbying directly, there isn’t much that can be done, fullstop. I think it helps insofar as they sense a degree of opposition from the number of letters received, particularly letters that don’t follow the lobbying format of an interest group. The Faqqer provided an analogy earlier in this thread, I think. Any savvy politician will think twice if there’s an unusually high degree of opposition to something, but the Tories have shown themselves to be pretty tin eared, and the Chancellor, in particular.

[Guesstimator]

I don’t think you can read anything into that response. It’s simply the Treasury line. It’s what all constituency MPs from the governing party will ask for when replying on technical matters about which they know feck all. Standard practice. Very few will actually write a considered response. You would’ve got a similar response in the past too. That said, it was always a question of when, and not if, and it has been telegraphed in the press, so there must be a reasonable chance that it will come in the AB.

Yep. Same, potted response (though perhaps a bit more misguidedly pointed from Damian Hinds) from mine two years ago.

TBH, I don't think writing to MP's is the way to tackle this at all, they simply do not grasp the nuances.

[northernladyuk]

Maybe there's a plan B in "IR35 advisement consultancy" to the big companies scared about using contractors.

The first piece of advice is that this advice is outside IR35.

[jamesbrown]

Seems it's coming...but somehow don't see any urgency from firms on this as they will have to bear extra costs..transferring contractors to ftc, paying off agents, managing disruption...

I don’t think you can read anything into that response. It’s simply the Treasury line. It’s what all constituency MPs from the governing party will ask for when replying on technical matters about which they know feck all. Standard practice. Very few will actually write a considered response. You would’ve got a similar response in the past too. That said, it was always a question of when, and not if, and it has been telegraphed in the press, so there must be a reasonable chance that it will come in the AB.

[vwdan]

Taxed like an employee but zero employment rights.

Why has this never been challenged?

Because people don't care (Rich, tax dodging contractors) or they don't quite believe it. I've been doing my best to explain the implications of me becoming inside IR35 to the guys here but I don't think they entirely believe it's that bad.

[BoredBloke]

"As you will appreciate, the contents of the Budget are for the Chancellor, and I do not know what may or may not be in it.

I appreciate your concerns about the impact changes to IR35 could have. Flexible labour plays an important role in the UK economy and it is necessary that the tax system recognises the different ways that individuals are working, while at the same time making sure nobody is given an unfair advantage.

In recent years there has been a substantial increase in the number of workers engaged through an employment intermediary. While many play a legitimate role in the labour market, increasingly some market themselves, at least in part, on the basis that they allow individuals and businesses to maximise their income through claiming tax relief on home-to-work travel expenses. The increase in the use of intermediaries means that large numbers of individuals are claiming tax relief that the majority of workers cannot claim, even when they hold very similar jobs.

People can also use intermediaries to disguise what would otherwise be employment income. The IR35 legislation seeks to ensure that what is properly employment income is taxed as such and tackles tax and National Insurance avoidance through the use of intermediaries.

Thank you again for taking the time to contact me.

Kind regards

Damian Hinds

Response from MP.

Seems it's coming...but somehow don't see any urgency from firms on this as they will have to bear extra costs..transferring contractors to ftc, paying off agents, managing disruption...

Its a bit rich when a MP starts talking about expenses abuse. Does he claim for his travel and accommodation for his role?

[Big Blue Plymouth]

Taxed like an employee but zero employment rights.

Why has this never been challenged?

Somebody will be along to tell us that the enormous day rates we get make up for this....

[PurpleGorilla]

Taxed like an employee but zero employment rights.

Why has this never been challenged?

[jonbon]

Maybe there's a plan B in "IR35 advisement consultancy" to the big companies scared about using contractors.

"As you will appreciate, the contents of the Budget are for the Chancellor, and I do not know what may or may not be in it.

I appreciate your concerns about the impact changes to IR35 could have. Flexible labour plays an important role in the UK economy and it is necessary that the tax system recognises the different ways that individuals are working, while at the same time making sure nobody is given an unfair advantage.

In recent years there has been a substantial increase in the number of workers engaged through an employment intermediary. While many play a legitimate role in the labour market, increasingly some market themselves, at least in part, on the basis that they allow individuals and businesses to maximise their income through claiming tax relief on home-to-work travel expenses. The increase in the use of intermediaries means that large numbers of individuals are claiming tax relief that the majority of workers cannot claim, even when they hold very similar jobs.

People can also use intermediaries to disguise what would otherwise be employment income. The IR35 legislation seeks to ensure that what is properly employment income is taxed as such and tackles tax and National Insurance avoidance through the use of intermediaries.

Thank you again for taking the time to contact me.

Kind regards

Damian Hinds

Response from MP.

Seems it's coming...but somehow don't see any urgency from firms on this as they will have to bear extra costs..transferring contractors to ftc, paying off agents, managing disruption...

[d000hg]

Maybe there's a plan B in "IR35 advisement consultancy" to the big companies scared about using contractors.