Concern over IR35

One in three self-employed ‘to stop contracting’ over tax change

Office, flexible working

Freelancers are thinking of changing work patterns

One in three freelancers are planning to stop contracting because of a change in the tax rules – known as IR35 – due to be introduced to the private sector in April. 

One in seven (13%) plan to find contracts abroad, one in ten (11%) intend to stop working or retire early and almost one in ten (8%) will move into employment.

Half of freelancers also said they will only continue freelancing if they can find contracts to which the new off-payroll working rules do not apply. 

IR35, which was introduced in 2000, is an anti-tax avoidance rule that applies to all contractors and freelancers who do not fall under HM Revenue & Customs’ definition of being self-employed.

It allows HMRC to collect additional payment where a contractor is an employee in all but name.

From April, every medium and large private sector business in the UK will become responsible for setting the tax status – or IR35 – of any contract worker they use, as a result of the changes which were introduced in the 2018 budget

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