An Early Day Motion (EDM) calling for the suspension of the April 2020 off-payroll implementation, and a meaningful review of the IR35 legislation is gaining momentum. With the help of contractors willing to take the time to get in touch with their MPs, could this EDM help create the much-needed pressure for the Chancellor to take action before it’s too late?
What does EDM13 call for?
EDM13, which was tabled on 19th December, notes that the off-payroll rules have already caused damage to public sector organisations; that the extension to the private sector will damage UK PLC, and cost over 150,000 contractors a pay cut of up to 25%.
It also notes that contractors will be forced to pay their clients’ national insurance bills without receiving any of the benefits of ’employment’.
Given that the Government has announced an IR35 ‘review’ since the EDM was first tabled, it seems even more apt that the motion states that it will “only be a genuine review if the roll-out is halted; and therefore calls for an immediate halt to the off-payroll tax roll-out..”
What is an Early Day Motion?
According to the Parliament website, EDMs are “…motions submitted for debate in the House of Commons for which no day has been fixed.”
“As there is no specific time allocated to EDMs very few are debated. However, many attract a great deal of public interest and media coverage.”
Over 1,000 EDMs are tabled during a typical parliamentary session, however the majority only receive one or two signatures.
Approximately 70 or 80 will receive over 100 signatures during a typical session, with six or seven reaching the 200+ signature mark.
I thought an IR35 Review was going ahead anyway?
Yes, last week, the Government announced an ‘IR35 review’ – however it is not a meaningful review, as it will not look at the underlying legislation at all. Its sole aim appears to be to make the April 2020 rollout go ahead – as smoothly as possible.
This ‘review’ is due to be completed by mid-February, less than a month before the March 11th Budget.
Prior to the General Election, contractors (particularly the Stop the Off-Payroll Tax campaign) were instrumental in extracting a commitment to review IR35 from leading Conservative MPs – including the Chancellor, Sajid Javid.
However, as this is a review in name only, a lot more needs to be done to highlight the toxic nature of the off-payroll reforms.
What can you do to help?
One key thing contractors can do is to visit the Stop the Off Payroll Tax campaign site, which contains lots of information to relay to your MP.
The other thing you can do is to ask your MPs to sign Early Day Motion 13.
Dave Chaplin, Director of the Campaign told us:
“The Treasury don’t care about ‘fairness’ – that’s just wrapping paper for their tax grab policy that is going horribly wrong. They care about money. People are losing work and multinationals are pushing jobs offshore. Many MPs are realising that their self-employed constituents are also being given 25% pay cuts, by the party of supposed small business.
“Ask your MP to sign the EDM and make representations to the Chancellor, to send a clear signal to the Government that this policy will be damaging to UK PLC.”