Tagged: HMRC; IR35
J GParticipantMarch 24, 2023 at 6:19 amPost count: 3
Insidious IR35 doubling its yield is an indictment Lord Bridges is right to call out
There was quite a bit going on for contractors last week but not-to-be missed, just after Spring Budget 2023, Lords Bridges of Headley stated that IR35 reform has generated £1.5billion for the Treasury each year. The Conservative peer observed that it’s a yield figure “which is double” that of previous estimates of how much the off-payroll rules would generate for the exchequer, writes Seb Maley, CEO of IR35 contract review firm Qdos.
An insidious policy…
This bold and arresting update on the yield of IR35 reform was made in parliament, when Lord Bridges shared his view, not only of IR35 – an “insidious policy” from HMRC, he said, but also of the chancellor’s March 15th package.
As far as I’m concerned, that the IR35 off-payroll framework has yielded twice as much as the government previously estimated, is a damning indictment of these rules.
It’s no secret that the introduction of IR35 reform in the public and private sectors saw many contractors unfairly forced onto the payroll of clients. That it has apparently earned the government twice as much as predicted — often at the expense of limited company contractors who were already compliant with IR35 — puts into perspective the flaws of this ill thought-out reform.
Read the full article from Contractoruk
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