By PaperRocket Accounting, Dec 4 2019 02:08PM
It can hardly have escaped your notice that a general election is coming. Yes, in the words of Brenda from Bristol “another one”! And of course, all the parties are vying for your vote with various promises (realistic or not). Whether it be promises about Brexit, the NHS, tuition fees or climate change, all the parties have released their manifestos and are doing the rounds fighting their corner as to why they should be elected.
And IR35 reform has now entered the discussions. Realising what a controversial and unpopular policy the new private sector IR35 reform is, and just how many self employed/freelancers votes they could potentially win with a favourable contractor stance, the main parties are now clarifying their position on the upcoming reform.
There is nothing in the Conservative manifesto regarding IR35.
However, they have recently promised a review of the policy if they win the election. Chancellor Sajid Javid told BBC Radio 4’s Money Box programme “I value the work of consultants and I want to make sure that the proposed changes are right to take forward”. Continuing, he said “We’ve already said that we’re on the side of self-employed people. We will be having a review and I think it makes sense to include IR35 in that review”.
As with the Conservatives, there is nothing regarding IR35 in the Labour manifesto.
There has been confusion over Labour’s exact stance when it comes to IR35. Originally, at a small business hustings in London, Labour’s shadow small business secretary Bill Esterson stated that they would stop the rollout of the reform to the private sector, saying “We absolutely can’t see it rolled out into the private sector the way things are at the moment… it should never have been implemented in one go”. However, he has now stated that Labour’s official policy is, like the Conservatives, to review the IR35 changes before they come into effect.
The Liberal Democrats do address IR35 specifically in their manifesto. They state that they will ‘end retrospective tax changes like the loan charge brought in by the Conservatives, so that individuals and firms are treated fairly, and review recent proposals to change the IR35 rules’.
Again, the SNP also address IR35 in their manifesto. They state that they will have a ‘review of the tax rules around intermediaries known as the IR35 tax rule and problems with implementation of the Loan Charge’.
However, whilst this may sound like great news, and a positive step forward, as with all promises made during general election campaigning, they should be taken with a pinch of salt. Promises of reviews are great, but only if a) they are followed through on and b) the reviews are legitimate, and not just lip service to win votes.
PaperRocket Accounting provide accounting and tax services to professional contractors and freelancers working in the UK.
We offer our clients a flexible choice of fixed fee monthly packages which cover all of their accounting and tax needs (so no hidden costs or surprise bills!). All of our accounting packages include a monthly subscription for a cloud accounting software subscription provided by the awarding winning FreeAgent.
Each of our clients is given their own dedicated qualified accountant with unlimited access in person, telephone, or by email.
We pride ourselves on our client satisfaction and customer service and were awarded 'Welwyn Hatfield Business of the Year 2019' in the SME Hertfordshire awards. We were also runners up and 'Highly Commended' for 'Best Contractor Accountant 2019' in The Contracting Awards, 'Small Practice of the Year 2016' in the AccountingWEB practice excellence awards, as well as FSB Hertfordshire Service Excellence finalists in 2015 and 2016.
To find out how we can help you please get in touch now.