According to the latest research, 57 per cent of self-employment individuals in the UK don’t know what IR35 is.
The research was conducted by FreeAgent and found that there was a lack of understanding among many self-employment individuals and small medium-sized enterprises (SMEs).
IR35 regulations are set to come into force for the private sector on 6 April 2020, with HM Revenue & Customs (HMRC) recently launching an updated Check for Employment Status for Tax (CEST) service.
The off-payroll working rules have been in place for public sector organisations that contract suppliers since 2017, with the number of workers classified as outside of IR35 falling by nine per cent in that time.
The research also found that 44.5 per cent of SMEs want the UK tax code for small businesses to be simplified, while more than half of self-employed workers want the Government to cut taxes for SMEs.
Ed Molyneux, CEO and Co-Founder of FreeAgent, said: “The revelation that less than half of self-employed people even know what IR35 is reveals a deeper problem – a vacuum of conveyance of important information between the Government and small businesses.
“The need for a more informed UK small business nation extends beyond IR35 and applies to other regulations which, at the end of the day, can make or break small businesses.”
The main political parties have recently stated their intention to review the IR35 rules after the General Election, while there have also been calls for more attention to be paid to niche sectors, such as media, film, and TV, where determinations can be more complex.
To ensure that you are prepared ahead of the IR35 regulations, contact our expert team today.