Calls for Government to rebuild ‘fractured relationship’ with contractors

Contractor bodies are calling on the Government to rebuild it’s ‘fractured relationship’ with contractors following controversial IR35 reforms phased in at the beginning of April despite strong opposition from the freelancing community.

Organisations such as freelancer news website Contractor Calculator have warned that public sector IR35 reforms have had a “devastating” and “damaging” impact on contractors and on projects all across the UK.

In a bid to avoid any further “catastrophic mistakes,” the contractor body amongst others is calling upon freelancers and the self-employed to write to their MPs in order to warn them of the true dangers of a private sector roll-out of the changes, which have so far only affected contractors in the public sector.

Under the new rules, personal service companies (PSCs) and public sector end clients are now expected to decide the IR35 status of the contractors that they provide work to.

The new calls follow a recent study, which in mid-August suggested that the Government ought to reconsider it’s stance on the reforms in a bid to rebuild it’s ‘fractured relationship’ with the nation’s self-employed individuals.

The study, commissioned by another leading contractor body, found that more than six in 10 (63 per cent of) UK contractors want the Government to prioritise building a fairer tax system for the self-employed going into 2018.

On top of this, a further 15.5 per cent of contractors and freelancers would like to see the appointment of a minister for the self-employed, while seven per cent want to see more favourable pensions arrangements for the self-employed.

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