Should IR35 Be Scrapped in the UK?
IR35: The Blunt Instrument Crippling UK Contracting
IR35—three letters that strike fear into the heart of every UK contractor. Heralded as a tool to close loopholes, this legislation has mutated into a weapon, bludgeoning flexible workers and throttling innovation. Let’s call it what it is: a disastrous policy that’s doing more harm than good.
What Is IR35 (And Why Should You Care)?
IR35 is supposedly designed to stop tax dodgers masquerading as freelancers. But in reality, it’s hitting genuine contractors—hard. If your contract falls inside IR35, you’re taxed as an employee but without any of the rights or protections. That’s right: the worst of both worlds.
No sick pay
No holiday entitlement
No redundancy protection
But full tax and National Insurance contributions
This isn’t just unfair—it’s outrageous.
The Devastating Impact on Contractors and Businesses
Let’s get real. Since the IR35 reforms, thousands of contractors have:
Abandoned the flexible workforce altogether
Been forced into umbrella companies with hidden fees and reduced take-home pay
Lost contracts as risk-averse companies refuse to engage with them
A recent survey from IPSE (the Association of Independent Professionals and the Self-Employed) found that one in three contractors left self-employment due to IR35. That’s not just a statistic—it’s livelihoods destroyed, expertise lost, and a blow to UK competitiveness.
“IR35 is a sledgehammer to crack a nut. The collateral damage is catastrophic.”
Killing Innovation and Crushing the Economy
The UK economy depends on agile, skilled contractors to drive projects, plug skills gaps, and ramp up innovation. But IR35 is slamming the brakes on this dynamic workforce. Companies now:
Avoid hiring UK-based contractors
Export projects abroad
Struggle to fill vital roles, leading to costly delays
A thriving contractor market isn’t just good for freelancers. It’s a pillar of the nation’s growth, productivity, and global edge.
The Case for Scrapping IR35
This is not a tweak-it-round-the-edges problem. It’s time for bold action. Here’s why IR35 must go:
| Problem | Impact |
|---|---|
| Disincentivises talent | Drives skilled workers out of market |
| Stifles flexibility | Makes UK businesses less competitive |
| Adds complexity | Drains resources on compliance |
| Sparks unfair taxation | Contractors pay more, get less |
Let’s call for an end to this broken system.
What Should Replace IR35?
If we scrap IR35, what’s next? The answer isn’t more clumsy regulation. It’s a fair, modern framework that:
Recognises the importance of flexible work
Delivers clarity for businesses and contractors
Taxes genuine employees and contractors appropriately
Protects, rather than punishes, the self-employed
The Time for Change Is Now
Enough tiptoeing around the issue. If the government is serious about a competitive, innovative economy, IR35 has to go. No more empty promises—just decisive action.
Contractors: Demand your voice be heard. Businesses: Speak up for the workforce you depend on. The future of UK innovation hangs in the balance.
Ready to Fight Back?
Don’t sit on the sidelines. Join the chorus calling for IR35’s abolition. Share your story. Contact your MP. Support campaigns for fair tax and employment rights.
The UK’s flexible workforce is too valuable to sacrifice. Let’s scrap IR35 and unlock our nation’s potential.
