The measure which was enforced in April 2017 now means that if you’re working on a public-sector contract, the public-sector body will be responsible for determining your IR35 status.
The Just Giving page set-up by IT contractor, Mike Gibson, has hit the £10.5k ball mark with 23 days still left to go.
The funds are being raised for step one of the challenge, ‘to conduct a research and analysis exercise to examine possible grounds for challenging IR35,’ which will be led by tax barrister, Michael Paulin.
IR35 fundraiser surpasses 100%
Mike Gibson wrote on the fundraising campaign page,
“Ican’t thank you all enough for the overwhelming response to our crowdfunding.”
“From the bottom of our hearts – thank you all, we are absolutely astonished to be within 20% of our target within 24 hours.”
“Given the progress, we may extend our target to give us some breathing space, but we’ll review that towards the end of the timeframe.”
Gibson will compile a list of complaints made against the new framework, which will then be given to Michael Paulin to be analysed. He will then undertake the most ‘exhaustive’ stage of the project; finding the most suitable grounds of action that will have the best chances of standing up and succeeding in court.
Contractors caught under IR35 are required to pay the same employment taxes of an employee, without receiving the protection of employment rights, such as maternity/paternity pay, sick pay and holiday pay.
Reaction to IR35 reform
The new framework has received criticism from all areas of the sector, from accountancy providers to academics.
IPSE, the Self-Employed and Freelancer Association, have been vocal in their criticism towards IR35 which has been clearly pointed out in their general election manifesto, A Contract with the Self-Employed.
James Collings, IPSE Chairman, has previously said,
“The next government must fully embrace the structural shift to give the economy the flexibility it needs.”
“Overall, the outgoing government’s approach to taxing the self-employed has been a complete disaster, with the ill-conceived plans to change IR35 and national insurance rightly attracting strong criticism.”
There has been speculation around whether the IR35 public sector measure will be implemented to the private sector. This topic is expected to be up for discussion in Matthew Taylor’s ongoing review into employment practices, which is expected over the Summer.
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