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IR35 reforms will close compliant businesses, groups warn

IR35 reforms set to take effect in the private sector in April are already having a catastrophic impact, 12 groups representing contractors and freelancers told Chancellor of the Exchequer Sajid Javid.

An increasing number of hiring organisations are refusing to engage contractors at all, according to IPSE, the Association of Independent Professionals and the Self Employed.

In a joint letter published by IPSE on February 12, the groups told Javid that they are “extremely concerned by the devastation already being caused” by the proposed extension, to large and medium-size organisations in the private sector, of rules requiring public sector organisations to determine the tax status of contractors engaged through personal service companies.

My news story for Tax Notes Today International (paywall), February 13:

IR35 Reforms Will Close Compliant Businesses, U.K. Groups Warn