IR35 reforms: HMRC's assessment of private sector impacts called into question | Computer Weekly

According to recent data from HMRC, the agency collected £1bn more in tax than expected following the extension of IR35 reforms to the private sector in April 2021. However, industry stakeholders caution against interpreting this as a success. The reforms shifted the burden of tax compliance from contractors to end-client organizations engaging them, which they argue has worsened conditions for IT contractors, leading to higher costs and reduced job opportunities. With an affected workforce much smaller than predicted, concerns about the reform's true impact persist.

HM Revenue & Customs (HMRC) has reported collecting £1bn more in tax than anticipated from the estensio of IR35 reforms, but stakeholders point to serious concerns.

While HMRC claims success in increased tax collection, contractors argue that the actual impact on the industry has raised costs and reduced hiring flexibility.

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