Time to take a stand
The Government’s proposal to change the way contractors are taxed in the public sector is nothing short of a disaster.
We now urge you to write to your MP and take a stand with IPSE.
To summarise the proposal, the Government intends to make public sector organisations, or the agency, determine the IR35 status of an engagement, as opposed to the contractor’s company. The client/agency will then be responsible for applying employment taxes to those businesses that are deemed to be ‘caught’ by the new rules. In effect, the government wants to treat contractors like employees, without offering any employment rights.
The damage this will have on public services and the flexible economy is too great to ignore. That’s why in our consultation response to the Government today we urged them to entirely abandon the proposal.
However we need you help too. We need to leave this Government in no doubt of how damaging the reform will be.
Make sure you spell out:
- how the proposed change will affect your business
- how will it affect the projects you work on (and what those projects are)
- what steps you will take if the proposal is implemented (will you stop working for public sector clients; put up your day rate; or stop contracting altogether)
- how the you will be denied employment rights, despite paying employment taxes
- what do you want the MP to do (e.g. urge the Chancellor to reconsider)
IPSE members can download a template letter here, to be sent to your MP, which highlights the damage this proposal would do to your business. Please note there are a couple of highlighted sections you should personalise, where you can write about the action you plan to take if the proposal is implemented, and just how you’ll be affected – for instance, will you have to work outside the public sector, or will you have to hike up your rates? Better still, feel free to put the whole message in your own words. Please let us know when you write to your MP and any response you receive by contacting us at firstname.lastname@example.org.
Where to send the letter
You can print and send the letter by post to:
House of Commons
London SW1A 0AA
Or copy and paste the text into an email. Use www.writetothem.com or http://www.parliament.uk/mps-lords-and-offices/mps/ to find your MP’s email address. Don’t forget to include your postal address in the email – the MP will need to check that you are their constituent before responding.
Stand side by side with us. With your help, we can win thisTax, ir35