Tories won't Scrap IR35

[Bagpuss]

How come no discussion on the article on the front Page? I though this was a contracting site!

Hopes among self-employed voters that the Tories' promised review of IR35 may scrap the contentious law have been dashed, after the party said repealing it was not viable.

In an email to a CUK reader, a high-ranking official at Conservative HQ said that revoking the legislation, introduced by Labour in 1998, could result in "unintended consequences."

Although the Tory review team still sees revoking IR35 as an "option", the senior official said it was only one of the potential outcomes, and one that industry doesn't want.

[minestrone]

I think it was discussed in a thread although not really that much.

I don't think the tories are going to win anyway.

[threaded]

Anyone who thought the Tories were ever serious about scrapping IR35 are at best delusional.

They might say it to win a few votes though. Which is the best you can expect really.

[NickFitz]

There are a lot of things the Tories aren't going to do, even though people allow themselves to be deluded into thinking they will.

[Sysman]

Anyone who thought the Tories were ever serious about scrapping IR35 are at best delusional.

Big businesses were supporting IR35, and the Tory party is traditionally seen as the "party of big business".

The initial increases in NI and pressure to run through a LtdCo rather than being self-employed was introduced under the Tories. On the going rates in the mid 1990s, self-employed status was the route to take from an accountant's view.

[centurian]

Big businesses were supporting IR35, and the Tory party is traditionally seen as the "party of big business".

The initial increases in NI and pressure to run through a LtdCo rather than being self-employed was introduced under the Tories. On the going rates in the mid 1990s, self-employed status was the route to take from an accountant's view.

For genuine self employment, it still is. A sole trader/partnership pays less employees NI than an 'employee' and no employers NI at all.

IR35 was introduced (rightly or wrongly) to crack down on those that simply wanted to declare themsevles as being self-employed.

Also the reason why big business likes IR35 is that it shifts responsibility for NI onto the LtdCo directors - not ClientCo.

[VectraMan]

It wasn't likely they were going to bring in a tax cut, which scrapping IR35 would be. However, I hope that they'll a) review the legislation and make it a bit clearer, and b) put pressure on HMRC to only persue people where it's economically justified.

[threaded]

Big businesses were supporting IR35, and the Tory party is traditionally seen as the "party of big business".

The initial increases in NI and pressure to run through a LtdCo rather than being self-employed was introduced under the Tories. On the going rates in the mid 1990s, self-employed status was the route to take from an accountant's view.

They're all parties of big business now. Governments are going the way of 'City States' and being replaced in the power hierarchy by Multinationals. It is a natural consequence of letting the banks get out of control.

[d000hg]

For genuine self employment, it still is. A sole trader/partnership pays less employees NI than an 'employee' and no employers NI at all.

IR35 was introduced (rightly or wrongly) to crack down on those that simply wanted to declare themsevles as being self-employed.

Also the reason why big business likes IR35 is that it shifts responsibility for NI onto the LtdCo directors - not ClientCo.

Yeah, sole-trader is the 'right' way to work as a self-employed person, from a theoretical view. It's also less complicated, you just do a personal tax form each year.

But, sadly most companies won't do this. Or should that be, most agencies?

[centurian]

It wasn't likely they were going to bring in a tax cut, which scrapping IR35 would be. However, I hope that they'll a) review the legislation and make it a bit clearer, and b) put pressure on HMRC to only persue people where it's economically justified.

But 'clearer' is only ever going to mean 'tightening' - otherwise they might as well scrap it, which as you've said - they're simply not going to do.

The intention of IR35 is very clear - and would catch 90% of contractors. It's the implementation that's very poor. Do you really want them to improve the implementation of it.

Serious question - not a wind-up. If IR35 was "simplified and clarified" such that we were all caught by it, would you be happy with that.