As we are well aware, one of the key issues surrounding IR35 is the ambiguity inherent in it’s tests for determining a contractor’s employment status.

The legislation uses phrases like ‘mutuality of obligation’, ‘control’, and ‘substitution’ to decide whether a contract falls inside or outside of IR35. These terms, however, are subject to interpretation and can often result in inconsistent outcomes. This creates an environment of uncertainty and confusion for contractors.

Additionally, contractors caught inside IR35 face the worst of both worlds. They pay taxes equivalent to those of a full-time employee but without the same employment rights. They do not have access to benefits such as paid annual leave, sick pay, maternity/paternity leave, pension contributions, etc. This leaves them with the worst of both worlds as they have neither the flexibility of contracting nor the benefits of full-time employment.

It is this inconsistency and unfairness which has caused the Association of Professional Staffing Companies (APSCo) to call on the Government to reform IR35 legislation in order to give a boost to the contractor workforce which in turn will help revitalise the economy.

Let us hope the government finally listens to reason.