ContractorCalculator debunks HMRC’s claims on success of IR35 reforms

Source: Contractor Calculator

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Contracting expert Dave Chaplin, CEO and founder of ContractorCalculator today shot down in flames claims published by HMRC into the apparent success of the Off-Payroll Reforms which were recently published as part of the consultation into Off-payroll working in the private sector.

Research conducted by IFF Research and commissioned by HMRC revealed amongst other findings:

  • 32% of public sector bodies said that it was now more difficult to fill contract vacancies
  • 46% of public bodies said that they had had disputes over status with contractors
  • 51% of public sector bodies said that it had been difficult to comply with the new regulations

HMRC has chosen to ignore these flaws, and simply cherry-picked and misconstrued all the research material to provide an inaccurate representation of the reforms.

Commenting, Dave Chaplin said: “It is time to debunk the false claims that HMRC is pedalling.  HMRC has voiced its lop-sided version of the story but we cannot allow the general public, and more importantly the country’s key decision makers at UK plc, to be misled.

“HMRC has banded around figures emphasising the supposed cost of non-compliance with IR35. Elsewhere, it claims that the reforms have improved compliance. None of this has been substantiated.

“Mystery statistics and misleading claims have been a recurring theme in HMRC’s promotion of the off-payroll rules. By contrast, there is a wealth of proof from multiple sources, which HMRC ironically dismissed in its consultation as ‘anecdotal’ and ‘rumours’.”

The body of evidence, includes:

  • A survey of more than 1,500 contractors by ContractorCalculator
  • Findings gathered from 1,494 recruitment firms by the Association of Professional Staffing Companies (APSCo)
  • A Freelancer and Contractor Services Association (FCSA) survey of intermediaries supporting more than 33,500 public sector workers
  • A survey of 450 healthcare locums by ContractorCalculator and the Independent Health Professionals Association (IHPA)
  • Findings gathered from more than 500 contractors, hiring managers and business leaders by Harvey Nash
  • Multiple investigative journalism items from ContractorCalculator and The Times.

“This compilation of facts and figures provides a true representation of the chaos that has ensued as a result of the public sector IR35 reforms and will hopefully encourage Government to think twice before introducing further drastic changes,” Chaplin concluded.

ContractorCalculator is encouraging all stakeholders and contractors to widely distribute its factsheet to ensure an accurate representation can be considered.

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