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IR35 review offers ‘cold comfort’ for businesses

27 Feb 2020

man at laptop

Responding to the publication of a Government review into IR35, Tej Parikh, Chief Economist at the Institute of Directors, said:

“The Government’s IR35 review will offer cold comfort to businesses. The decision to press on with the changes in April will cause significant concern.

“While firms understand the principle of the legislation, confusion around how to classify contractors has caused disruption for firms at a time when wider uncertainty hangs over the business community. Outside expertise and project-based work play an important role for many organisations, and labour market flexibility has been a key source of strength for the economy.

“A light-touch approach to enforcing penalties will help, but many will be left wondering why the policy could not wait another year altogether to resolve the evident challenges around its implementation.”

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