IR35 ‘is a blight on freelancers’ – urgent review needed as self-employed confidence drops | Personal Finance | Finance

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“After a dark year in which they were disproportionately hit by the financial impact of the pandemic, freelancers are again seeing cause to hope.

“Amid the optimism, however, there are also lingering causes for concern. Above all, the recent changes to IR35 are clearly damaging freelancers’ confidence in the future of their businesses – not unreasonably as they see the chaos now running through the contractor hiring market.

“In fact, this is the first time since IPSE’s Confidence Index began in 2014 that freelancers have had less confidence in their businesses than in the economy.

“Historically, the freelance sector has always been a key driver of economic recovery and it is clearly raring to go. At the same time, however, the IR35 tax change is a blight on freelancers that is undermining them at a crucial and otherwise optimistic time. We urge the Government to step in, clear up the chaos left after IR35 and launch a full review and reform of self-employed taxation. It must ensure freelancers have the confidence in their way of working to take up their vital place in our workforce and drive the UK’s economic recovery.”



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