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Autumn Budget, 2017: IR35 announcement

  • United Kingdom
  • Global

    23-11-2017

    Diane Gilhooley, Human Resources Practice Group Head at Eversheds Sutherland comments on today’s IR35 announcement:

    “Earlier this year, HMRC made public authorities responsible for assessing whether many of their freelancers and contractors were ‘disguised employees’ and should therefore pay employment tax and NICs.

    “Contractors have reportedly left the public sector in large numbers or demanded pay increases to cover their additional costs, with concerns about labour shortages being clearly voiced as a result of this move.

    “As such, today’s announcement that the government is going to consult on the possibility of extending this responsibility to include the private sector will cause yet more worry for many more businesses. They fear it will undermine the UK’s flexible and highly-skilled freelance workforce and add significant administrative and cost burdens during already challenging times.”

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