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UK – Calls for abolition of IR35

21 October 2020

The former Financial Secretary to the Treasury Mel Stride has called for the abolition of the IR35 Off-Payroll Working Rules reform during a Treasury Committee meeting about ‘Tax after Coronavirus.’

Making his closing remarks, Stride, who helped usher in the extension of the Off-Payroll legislation to the private sector, singled out “the dreaded IR35”, stating, “I think we all agree that it is best abolished as soon as possible.”

The comment rounded off a meeting in which MPs, industry experts and stakeholders all voiced strong opposition to the legislation in both its traditional and modern format, and in which alternate measures for addressing inadequacies in the tax system were also posed.

Dave Chaplin, CEO and founder of ContractorCalculator and IR35 Shield and the director of The Stop The Off-Payroll Tax campaign said the discussions were “about major wholesale changes to the tax system that would take years to plan and implement.”

“Everyone has been talking about the need to do away with IR35 for 20 years. This is nothing new. Unfortunately, the political will isn’t there to change matters, even if the potential outcome is a functioning tax system,” Chaplin said. “There are also many politicians who run their own companies and would be subject to higher taxes if the playing field changed. The hens don’t tend to vote to get their wings clipped.”

Attendants in the meeting included representatives from the Association of Independent Professionals & the Self-Employed, and the Confederation of British Industry.