The Treasury’s recent announcement of a review into off-payroll tax rules (IR 35) is a great opportunity to reassess the ‘flawed’ legislation, according to the Federation of Small Businesses (FSB).
Responding to the government’s launch of its IR35 review, FSB National Chairman Mike Cherry said: “This important review presents an opportunity to reassess our flawed off-payroll legislation. We’ve already heard big corporations say they’ll pull the plug on contractors if planned changes to IR35 go ahead in April.
“We have to remember that we’re in a global competition for talent. We need to make the UK a better, not more restrictive, place to do business. At a time when skilled, flexible contractors are needed more than ever by employers, the switch in where responsibility lies for IR35 assessments will cause firms to shut out contractors.
“The official announcement of a manifesto commitment to review support for the self-employed is very welcome. We look forward to working with the Treasury to ensure that sole traders have access to the finance, connectivity and protections they need to thrive.”