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MPs right on "chilling effect" of IR35, says IPSE

IPSE has responded to a report published today by MPs criticising HMRC's customer service levels and the deterrent effect of IR35 on "legitimate economic activity".

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IPSE Press Office
28 Feb 2024
1 minutes
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Reacting to the Public Accounts Committee’s (PAC) report criticising HMRC’s customer service levels, IPSE (the Association of Independent Professionals and the Self-Employed) has praised MPs’ focus on the economic damage caused by the IR35 and off-payroll working rules.

IPSE’s Director of Policy Andy Chamberlain said: “The PAC is absolutely right to highlight the chilling effect of IR35 on legitimate economic activity.

“HMRC has hounded individuals through the courts for years, often only to be proved wrong. This is making clients extremely reluctant to engage the freelance talent they need to deliver projects.

“If we really want to see a return to growth and engender a culture of economic confidence, we must harness the benefits of our flexible labour market, rather than stifling it with the unworkable off-payroll rules."

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