CIPR warns of IR35’s ‘damaging effect’ on freelancers

The CIPR has called on the government to delay the implementation of proposed tax regulations which threaten to deprive the private sector of the necessary experience and skills that an independent practitioner can offer.

In a response to an HMRC consultation on the IR35 regulations, the CIPR argues that the proposed changes affecting off-payroll workers in the private sector would stifle enterprise and business at a time when the economy needs to be more agile.

According to the State of the Profession report, 12% of the industry’s workforce – approximately 8,500 PR professionals – describe themselves as independent practitioners. The proposals, already operating in the public sector, are intended to remove the tax advantage gained by those seeking to disguise employment by operating through a limited company. Whilst this need is recognised, the existing regulations are overly complicated and will be damaging for businesses, practitioners and the economy.