In the Autumn Budget, the chancellor announced that there will be a consultation on non-compliance with IR35 including whether to extend the IR35 tax rules operational in the public sector to the private sector.
Commenting, REC chief executive Kevin Green says:
“We welcome the news that government has heeded our calls to not rush in the extension of IR35 rules into the private sector and to have a broader consultation on non-compliance.
“We are glad that government is looking at the impact IR35 has had on the public sector and how guidance is working so that we can avoid a similarly rushed implementation.
“In addition, we are pleased to see the government taking a holistic approach to employment status and tax with the discussion paper announced today.
“We are ready to represent the business community and the recruitment industry to improve these rules and protect the flexibility of our labour market and the wider economy. We will put our energy into making sure that the voice of our industry is heard during the consultation period.”