Tag Archive for employing people as a sole trader

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Labour pledges to scrap IR35 rollout to business … and then backtracks

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Originally written by Timothy Adler on Small Business
Bill Esterson, the shadow small business minister, spoke out of turn this week when he pledged Labour would stop the rollout of IR35 tax changes to business.
Speaking on Monday night, Esterson pledged at a small business hustings in the City of London that Labour would scrap IR35 being extended to the private sector, despite there being nothing about it in Labour’s manifesto.
“We absolutely can’t see it rolled out into the private sector the way things are at the moment,” Esterson told the hustings.
“It should never have been implemented in one go.”
Asked later to confirm if it was Labour Party policy to review IR35 and not rollout changes out to the private sector in April 2020, he tweeted: “absolutely”.
>See also: Labour small business minister: ‘Boris just says whatever pops into his head’
However, that tweet was subsequently deleted:

Esterson told Small Business that Labour policy was now to review IR35 changes before they come into effect.
IR35 will draw sole traders and freelance contractors into the tractor beam of IR35, which HMRC sees at tax avoidance when freelance contractors are effectively permanent.
Liberal Democrat deputy leader Sir Ed Davey was the big winner at the City hustings, organised

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Hot Business News Today

Small businesses call for HMRC to delay IR35 tax change

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Originally written by Timothy Adler on Small Business
Small businesses have called for the Treasury to delay its controversial IR35 tax change, which is meant to clampdown on employees passing themselves off as freelancers in order to avoid tax.
The government has already restricted freelancers working full-time in the public sector as contractors, which means they pay less tax than equivalent employees. As employers are the ones who face penalties if they categorise full-time contractors wrongly, it makes hiring sole traders less appealing.
>See also: How to wind up your personal service company ahead of IR35 legislation
Now the Treasury wants to extend its IR35 legislation to the private sector in April 2020.
Mike Cherry, national chairman of the FSB, said: “The self-employed certainly don’t need an IR35 rule change that makes hiring contractors less attractive. We’ve already heard noises from big corporates to indicate that, if this change does take effect in April as planned, they’ll pull the plug on sole traders.
“Common sense dictates that a delay to the April roll-out of these rules is now needed.”
Back in September, chartered accountants also called for the IR35 tax change to be delayed. The Institute of Chartered Accountants in England and Wales (ICAEW) said the date

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