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IR35 could be reason for self-employment drop, warns IPSE

The IPSE has included changes to the IR35 system in a list of regulation changes that are pushing people towards abandoning their self-employment status.

Since January 2018, unemployment has been rising. It now stands at 4.1%, up from 3.2%. Meanwhile, the Office of National Statistics figures show that self-employment has fallen by 59,000. The not-for-profit IPSE, which works to represent the interests of the self-employed in the UK, sees these two statistics as a warning of problems to come.

Andy Chamberlain, who is the Deputy Director of Policy at IPSE, recently explained the connection between the two sets of figures. He said:

“The fact that unemployment has also risen should be a red flag to policymakers. If the self-employed are discouraged from working for themselves by ill-judged policies like IR35 and Universal Credit, it is likely to mean further rises in unemployment.”

He explained that many members of the organisation are now suffering from lower levels of confidence and earnings. Many are saying that this is due to changes in government policies. Some are deciding to stop working as a self-employed person, which means that they automatically join the ranks of the unemployed until they find work.

This is a concern that accounts from Bromborough to Truro share. Some, like ourselves at Wainwrights, are taking innovative steps to ensure that their clients have access to the sound advice and support before the changes take place, by offering clients the chance to secure a £50 discount when they sign up for IPSE membership.

If you wish to take advantage of this offer, just enter the code wainwrights50 when you sign up on the IPSE website.

Posted by Peter
December 5, 2018

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