{"id":598315,"date":"2023-01-17T05:50:50","date_gmt":"2023-01-17T11:50:50","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/17\/ir35-reforms-contractors-cite-tax-avoidance-legislation-as-biggest-concern-in-2023\/"},"modified":"2023-01-17T05:50:50","modified_gmt":"2023-01-17T11:50:50","slug":"ir35-reforms-contractors-cite-tax-avoidance-legislation-as-biggest-concern-in-2023","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/17\/ir35-reforms-contractors-cite-tax-avoidance-legislation-as-biggest-concern-in-2023\/","title":{"rendered":"IR35 reforms: Contractors cite tax avoidance legislation as \u2018biggest concern\u2019 in 2023"},"content":{"rendered":"<div id=\"content-header\">\n<h2>Contractors have cited the IR35 reforms as being their biggest concern in 2023, ahead of the cost-of-living crisis and the government\u2019s planned tax rises<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"Caroline Donnelly\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Caroline-Donnelly\">Caroline Donnelly,<\/a><br \/>\n\t\t\t\t\t\t<span>Senior Editor, UK<\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>16 Jan 2023 13:07<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p>Negotiating the UK government\u2019s <a href=\"https:\/\/www.computerweekly.com\/news\/252527193\/Defra-confirms-final-settlement-of-865m-with-HMRC-over-historic-IR35-status-assessment-errors\">IR35 tax avoidance legislation<\/a> remains the biggest concern for contractors in 2023, according to survey findings compiled using feedback from 700 freelance workers.<\/p>\n<p>The survey is a recurring piece of research, conducted on an annual basis by IR35 insurance provider Qdos, with more than a third of this year\u2019s participants (36.2%) citing the IR35 legislation being their \u201cbiggest fear\u201d for 2023.<\/p>\n<p>The reason for this could be linked to the fact the legislation was also flagged in the poll by 61.1% respondents as being the \u201cbiggest contributing factor\u201d towards poor business performance in 2022. \u00a0<\/p>\n<p>Other top concerns for the year ahead cited by respondents include the cost-of-living crisis (31.7%) and the government\u2019s planned roll-out of tax hikes later this year (25.2%).<\/p>\n<p>\u201cThere is a cost-of-living crisis happening, yet IR35 remains contractors\u2019 greatest fear for the year ahead,\u201d said Qdos CEO Seb Maley. \u201cWhichever way you look at it, the introduction of the off-payroll working rules has made operating outside the scope of IR35 more difficult for genuinely self-employed contractors.\u201d<\/p>\n<p>How the IR35 legislation, introduced at the turn of the millennium, <a href=\"https:\/\/www.computerweekly.com\/news\/252504412\/DWP-pays-HMRC-879m-after-IR35-review-reveals-historic-contractor-tax-status-assessment-errors\">works in both the public<\/a> and private sector has been subject to reform in recent years, as part of a clampdown by <a href=\"https:\/\/www.computerweekly.com\/news\/252524500\/HMRC-to-review-how-IR35-works-in-practice-following-PAC-criticism\">HM Revenue &#038; Customs (HMRC)<\/a> on disguised employment.<\/p>\n<blockquote>\n<div>\n<figure>\n   \u201cWhichever way you look at it, the introduction of the off-payroll working rules has made operating outside the scope of IR35 more difficult for genuinely self-employed contractors\u201d<br \/>\n  <\/figure><figcaption>\n   <strong>Seb Maley, Qdos<\/strong><br \/>\n  <\/figcaption><\/div>\n<\/blockquote>\n<p>The reforms, respectively introduced in April 2017 and April 2021 to the public and private sectors, saw contractors cede control for determining whether or not their end-user engagements were inside or outside IR35 to the clients that hired them.<\/p>\n<p>This was on the back of claims by HMRC that allowing contractors to decide for themselves how they should be taxed was a system that had been used and abused by some individuals to artificially declare themselves as being outside IR35 to minimise the amount of employment taxes they were expected to pay.<\/p>\n<p>In the lead-up to the public and <a href=\"https:\/\/www.computerweekly.com\/news\/252515619\/IR35-reforms-Private-sector-warned-HMRCs-12-month-light-touch-enforcement-period-is-ending\">private sector roll-out<\/a> of the changes, Computer Weekly reported on numerous instances where end-user organisations responded to this shift in responsibility by issuing hiring bans against contractors or issuing blanket determinations that saw all of the contractors they engaged being reclassified as working inside IR35.<\/p>\n<p>Since then, the picture seems to have changed, with the Qdos research suggesting that 80% of contractors were able to secure an outside IR35 contract in 2022, which represents a 15.4% increase on the previous year. However, nearly half (44.3%) described getting an outside IR35 contract as difficult to do.<\/p>\n<p>Maley said there were positives to be drawn from this part of the research. \u201cThis is hugely positive given that the vast majority of contractors, in our view, belong outside IR35. But there\u2019s clearly still a lot of work to be done, particularly by businesses,\u201d he said.<\/p>\n<p>\u201cFar too many have insisted that contractors operate on the payroll, regardless of their true IR35 status. This is a needless, expensive and sometimes even non-compliant approach to managing IR35.<\/p>\n<p>\u201cHMRC is making no secret about its increased IR35 compliance activity, either. This will no doubt play on the minds of contractors, and indeed businesses, which can also be hit with massive tax bills for non-compliance,\u201d he added.<\/p>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on IT legislation and regulation<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/252524822\/Contractors-lack-confidence-in-Prime-Minister-to-follow-through-with-promised-IR35-review\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia.jpg 1280w\" alt ><\/p>\n<h5>Contractors lack confidence in prime minister to follow through with promised IR35 review<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/252524072\/Contracting-market-weighs-in-on-Liz-Truss-pledge-to-review-IR35-rules-if-she-becomes-prime-minister\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/London-Westminster-Parliament-1-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/London-Westminster-Parliament-1-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/London-Westminster-Parliament-1-adobe.jpeg 1280w\" alt ><\/p>\n<h5>Contracting market weighs in on Liz Truss pledge to review IR35 rules if she becomes prime minister<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252513255\/IR35-reforms-HMRC-slammed-for-over-collecting-tax-from-non-compliant-public-sector-bodies\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia.jpg 1280w\" alt ><\/p>\n<h5>IR35 reforms: HMRC slammed for \u2018over-collecting tax\u2019 from non-compliant public sector bodies<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252503915\/IR35-Contractors-demand-tax-and-employment-law-alignment-to-protect-zero-rights-workers\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-1-fotolia.jpg 1280w\" alt ><\/p>\n<h5>IR35: Contractors demand tax and employment law alignment to protect \u2018zero-rights\u2019 workers<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/252529204\/IR35-reforms-Contractors-cite-tax-avoidance-legislation-as-biggest-concern-in-2023\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Laine Pingree<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contractors have cited the IR35 reforms as being their biggest concern in 2023, ahead of the cost-of-living crisis and the government\u2019s planned tax rises By Caroline Donnelly, Senior Editor, UK Published: 16 Jan 2023 13:07 Negotiating the UK government\u2019s IR35 tax avoidance legislation remains the biggest concern for contractors in 2023, according to survey findings<\/p>\n","protected":false},"author":1,"featured_media":598316,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22553,43267,46],"tags":[],"class_list":{"0":"post-598315","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-contractors","8":"category-reforms","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/598315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=598315"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/598315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/598316"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=598315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=598315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=598315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}