IPSE (the Association of Independent Professionals and the Self-Employed) has said that the changes to IR35 self-employed taxation coming into effect today are undermining the sector at the “worst possible time”.
IPSE research has shown that half of freelancers are planning to stop contracting in the UK after the changes – unless they can get contracts unaffected by them. Instead, they are planning to seek contracts abroad, stop working altogether, seek an employed role or retire within the next year.
Clients seem to be reacting badly to the changes too: nearly one in four contractors said in February that their clients were either uncertain or had made no indication of what they would do in response to the IR35 changes.
Meanwhile, a quarter said that their clients were planning to blanket-assess all their contractors as ‘inside IR35’ and one fifth will only engage contractors working through umbrella companies. Nearly one … Read the rest