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Public Sector IR35 reform opposition

Public Sector IR35 reform opposition

The IPSE has been a particularly vocal party when it comes to opposition against the proposed IR35 that are set to heavily impact contractors working the public sector.

The proposed reforms, if approved, are likely to see many clients and agents declare contractors work as full time or temporary employees.

The potential ramifications are huge, with many contractors dissatisfied with the possibilities and hinting at not making themselves available for public sector work going forward.

With the UK public sector reliant on around 26,000 contractors at any one time, the impact could be massive. This is something IPSE has highlighted by publishing comments on the reforms from contractors who are likely to be affected.

“I have no confidence that the interim agency would have any skills, or willingness, to take my company tax position into account,” said Matt Cocker, who runs a small management consulting and marketing company. “They would err on the side of least risk and apply the tax regardless. The onus would then fall on me and my accountant to unwind and recover any overpayments, which could take a couple of years to recover”.

“The tax status of my company is not a matter that can be fairly assessed by a third party,” said Nigel Simpson, an independent contractor working for the Ministry of Defence. “Despite the professional assessment of my legal advisers, I can never be sure when committing to a contract what its tax status will be judged to be at a later date by an unknown and unqualified party.”

IPSE has also previously encouraged those affected to write to their MP and outline their viewpoint.