Finance Bill

Written evidence submitted by Jonathan Kidd (FB04)

1. I have run my Ltd company for over 20 years and in doing so have provided a hugely flexible IT service for many companies throughout the country. To be honest, I was going to write a short piece on the benefits for myself and the clients of running my services as a business but I’m tired of this whole IR35 shambles.

2. IR35 has been around now for 20 years, it has been a massive failure addressing the problem it was brought in to solve. The employee / non-employee argument has cost millions in court cases and I am sick and tired of the ridiculous arguments about whether a contractor buying a £1.99 sandwich from the company canteen then constitutes them as being an employee or some such nonsense.

3. CEST has been proved to be not fit for purpose, HMRC don’t even rely on it, another example of more waste of time and money.

4. Many clients blanketed all use of PSC providers earlier this year before Off-Payroll was then delayed for a year. It was proved that a large number of clients DO NOT wish to take on the risk of HMRC investigations.

5. The employee / non-employee argument is tired and a non-starter. If I am sat next to an employee doing a similar role I receive NONE of the benefits nor the security of that employee. Supposing that other person is working for an out-sourced company based off shore, maybe I should be paying the same level of taxes as them then ?

6. IR35 is creating a nasty new type of employment, zero hours workers with zero rights.

7. The independent House Of Lords Select Committee tore IR35 (and the HMRC representatives) apart.

8. A full independent review needs to happen for IR35. In fact, a complete overhaul of taxation for temporary workers and rights needs to happen but no one seems to have the appetite for that so for now it looks like another plaster being applied.

May 2020

 

Prepared 15th June 2020