The website Contractor UK has been speaking to contractors ahead of today’s election to find out exactly what the freelancing community expect from the next government. Unsurprisingly, repealing the IR35 tax rule is top of most contractors’ wish lists. Getting rid of the contentious 1998 law appears to be more important to contractors than an assurance of government contracts and a more small-business friendly Whitehall.
One contractor who spoke to Contractor UK said: “I’d like the party in power to encourage micro-businesses rather than view them with distrust and suspicion. Reviewing their tax laws, including IR35, would be a big help.”
Another contractor actually stated his intention to stop IT contracting, which he has been doing for 20 years. He placed the blame firmly with IR35, likening it to the “permanent sword of Damocles…hanging over his head.”
He continued: “My election wish [is that] the new government reviews the IR35 legislation and introduces fairer tax laws for one person companies.”
A service management contractor stated that while repealing IR35 is necessary, “real change” would only be effected with the abolition of Section 44 of the Income Tax (Earnings and Pensions) Act, adding: “[This part of the legislation] prevents us being genuine sole traders by making the intermediary company – i.e. the agency – liable for unpaid taxes. Which in turn means we need our own limited company if we are to work through agencies.”
Contractor UK’s voter sample shows that the Conservative Party have the most support, however, unlike many of the national polls, it shows that Labour come in second with the Lib Dems taking up third place.
Source: Contractor UK