Former Lord Chancellor Robert Buckland has urged the Government to abandon the controversial IR35 reforms in an attempt to win back public support ahead of the upcoming general election.

Buckland, along with several other influential Conservative party members, has expressed concerns over the tax legislation’s detrimental effects on the contracting industry and the wider economy.

In an article published on the Conservative Home platform, Buckland described IR35 as a “Frankenstein’s monster”.

He said it was a rule which, despite its noble intention to curb tax avoidance, has become burdensome.

He believes that it threatens dynamism, entrepreneurship, jobs, and growth and should, therefore, be repealed or reformed further.

IR35 controversy

Buckland argues that IR35 discourages independent professionals from taking on projects and curtails their ability to negotiate terms and work arrangements freely.

The legislation also places a substantial administrative and financial burden on businesses engaging contractors.

The ambiguity of IR35 makes it difficult for companies to make accurate employment status determinations.

The rise of IR35 avoidance schemes

The introduction of the off-payroll rules has also led to a proliferation of non-compliant tax avoidance schemes.

Experts say that the Government must act swiftly to halt these operations, which result in massive tax avoidance and go against the initial objectives of IR35.

The ongoing debate around IR35 highlights the need for balance in tax legislation — a balance that protects the rights of contractors enables businesses to thrive and ensures tax fairness.