IR35 insurer Qdos has welcomed calls from the Conservative MP Sir John Redwood to reverse IR35 reform (the off-payroll working rules) and “look” at the incoming increase to Corporation Tax.
Speaking to Sky News on Sunday ahead of the Spring Budget on 15th March, Sir Redwood said, “I think, first of all, the self-employed are getting a very bad deal. I think we should reverse the 2017 and 2021 changes to so-called IR35. We want to promote more self-employment – make it easier for people to get into self-employment. That is the quickest way to expand capacity.
“Then I think we need to look at business taxes. I don’t think the Corporation Tax delayed increase will raise the money The Treasury and the OBR think it will. All the evidence is, in the past, when Conservative governments have had the courage to cut the Corporation Tax rate – never a popular move – it raises more money.”
Prime Minister Rishi Sunak served as Chancellor when IR35 reform was introduced in the private sector, in April 2021. The move made medium and large businesses responsible for determining IR35 status, with fee-paying parties liable.
The reform was set to be repealed as part of the mini-Budget in September 2022, before the plans were abandoned by new Chancellor, Jeremy Hunt.
In response, Qdos CEO, Seb Maley, said, “Millions will welcome Sir John Redwood’s comments. Whichever way you look at it, IR35 reform has damaged flexible working in the UK. It’s made it harder to work self-employed and harder for businesses to engage these workers – at a time when the economy desperately needs the skills and flexibility of independent workers.
“Rishi Sunak himself saw through IR35 reform in the private sector when Chancellor. So he’s no stranger to this legislation, nor the challenges it has created. Reversing IR35 reform would be the fair and logical thing to do. However, when it comes to IR35, the government has anything but fair and logical. Its head has been buried in the sand for years.”