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Contractors want fairer tax system

Vast Majority Of Contractors Want Fairer Tax System

The majority of contractors believe the government should engage with them better and build a fairer tax system, according to new research from the contractor insurance company Qdos Contractor.

 

Some 63% of contractors and freelancers surveyed said they believe the government should prioritise building a fair tax system that works for contractors and not against them.

This result underlines the huge concern recent reforms to IR35 legislation have caused, with other suggested areas for the government to focus on polling significantly lower in the survey.

Just 7% of contractors believed the government should incentivise pensions for the self-employed, while 10% believed mortgages should be made more accessible and 15.5% suggested the government should appoint a Minister for freelancers and contractors.

 

This is just the latest research that underlines the growing concern caused by the changes  to IR35 in April this year. As we noted previously, the possibility of the IR35 reforms being extended to the private sector has been named contractors’ top work worry, with a third of contractors saying they would return to full time employment if this did happen.

 

We’ve noted that we believe that there are still plenty of reasons to continue contracting even if the IR35 reforms are extended to the private sector. We’ve also noted that the Taylor review might prompt a rethink on IR35.

Either way, it’s important to gain a full understanding of the reforms and how you can avoid being unnecessarily affected. We’ve created a guide to IR35 to help you do this, which you can download here.

We’ve also created a guide to making the switch to using umbrella company, which is becoming an increasingly popular option as if offers more security against the backdrop of ongoing changes to IR35 legislation. This guide outlines what making the switch involves as well as the pros and cons. Check back over the coming week, when this will become available to download in our guides section.

 

We understand the concern caused by the recent IR35 reforms, so if there is a specific issue you’d like to discuss further, please don’t hesitate to get in touch with us.