IPSE responds to government’s U-turn on IR35 reforms repeal

The new chancellor Jeremy Hunt has confirmed that plans to repeal IR35 reforms in the private and public sectors will no longer go ahead, less than a month after his predecessor Kwasi Kwarteng had announced the proposal.

Responding to the U-turn, the Association of Independent Professionals and the Self-Employed (IPSE), which has been campaigning against the IR35 for 20 years, said the decision will be a “huge blow” to thousands of self-employed contractors and the businesses they work with.

“The reforms to IR35 have created a nightmare for businesses seeking to engage talent on a flexible basis, while simultaneously forcing individuals out of business altogether,” said Andy Chamberlain, Director of Policy at IPSE.

Referring to the decision as “spineless,” Chamberlain said the government is “well aware of the problems caused by this damaging legislation.”

“Businesses that were looking forward to an era of less complexity and less cost will have had those hopes dashed today. Our fear is this decision will lead to yet more work being off-shored to other territories and more people being forced to work through unregulated umbrella companies. The supposedly pro-business Conservative government has sent out a clear message today – it does not support people who work for themselves,” the IPSE Director of Policy added.

As well as campaigning against IR35, the IPSE advises contractors and the self-employed on how to navigate it.