Comments on: “Ironic”: IR35 reforms have facilitated a zero-rights employment boom in the public sector https://www.freelanceinformer.com/news/ironic-ir35-reforms-have-facilitated-a-zero-rights-employment-boom-in-the-public-sector/?utm_source=rss&utm_medium=rss&utm_campaign=ironic-ir35-reforms-have-facilitated-a-zero-rights-employment-boom-in-the-public-sector Empowering the Freelance Economy Tue, 15 Aug 2023 06:36:18 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Dave T https://www.freelanceinformer.com/news/ironic-ir35-reforms-have-facilitated-a-zero-rights-employment-boom-in-the-public-sector/#comment-3662 Fri, 11 Aug 2023 19:40:17 +0000 https://www.freelanceinformer.com/?p=13098#comment-3662 The Tories could lose the next general election because of this IR35 implementation – taking away the rights and freedom of the self employed to be their own boss. The result is a national workforce working less or retiring early causing a stagnant economy. The current government lacks vision in favour of short term gains and this could be their downfall. I will be voting for a government that will reverse this policy!

]]> By: Kenny https://www.freelanceinformer.com/news/ironic-ir35-reforms-have-facilitated-a-zero-rights-employment-boom-in-the-public-sector/#comment-3656 Thu, 10 Aug 2023 11:23:12 +0000 https://www.freelanceinformer.com/?p=13098#comment-3656 “In the UK public sector, all contracts for services supplied through an intermediary (such as a limited company) are subject to IR35 unless the client can demonstrate that the worker is not an employee. This means that if you are a contractor working in the public sector, you are likely to be inside IR35 unless your contract meets certain criteria.”

This is misleading, because big consultancies are exempt from the regulation. This means if they provide worker who works as an employee, they are allowed to make profit off their work. Typical example is big consultancy hiring a developer on £60k salary and selling their service for £600 or more per day. If such corporation has a multinational structure, they can easily shift this profit offshore.
Effect is that government gets workers who couldn’t find jobs elsewhere, the pathway to starting own consultancy business is closed and reserved for big players and big players are allowed to avoid paying taxes by exemption from IR35 rules.

This needs an investigation.

IR35 has been created precisely to stop talented workers from competing with big consultancies. Nothing to do with taxes. If the goal was to increase the tax yield, then big consultancies wouldn’t have gotten an exemption.

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