Ask HN: What will the implications of IR35 changes be in the UK IT industry?

2 pointsmsurekci6y ago1 comments

The UK government has released a draft of what they are planning to do in regards to IR35 which impacts IT contractors heavily.

How do you guys foresee this playing out? Will companies start allowing contractors to work remotely with their own equipment? Pay higher rates to counteract the loss of having to pay extra taxes? Pay a higher permanent rate? Or will it just be a hit that contractors will have to take?

Draft: https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020

1 comments

1 comments · 1 top-level

neilwilson6y ago

IR35 has been around for twenty years. All this change does is make the employer liable if they hire a contractor and treat them like an employee.

That was the original design but it was changed by lobbying from the professions to avoid IR35 hitting them.

Ultimately it is a matter of power in negotiation. If the hirer needs the skills they’ll either alter the way the task is done or just pay the tax.

The impact will be in aggregate. Any tax reduces the overall number of transactions. That’s sort of the point of it.

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