It has been a busy time in the Government this summer with the recent changes: firstly, the resignation of Boris Johnson, the fight for a new leader and as with all things, we need to wonder how this might affect contractors.
After all, the Prime Minister who agreed changes to IR35 is gone.This all came after an unprecedented and record-breaking set of resignations, and huge potential change. Yet what do contractors think about the hopefuls that are trying to take his place?
Well, it sounds like they are specifically rallying against them rather than rallying for anyone. Is there no approach that contractors think will work in their favour?
IPSE is positive about this change. Their view is that Boris Johnson and his government brought along the IR35 changes and the resulting chaos. Therefore, a change of that government could be a good thing.
They are hoping that it could spell some changes for the good of contractors in the long run. As such they have written to the new Chancellor to open-up a dialogue about issues surrounding contractors and the self-employed. With the Conservative leadership contest ongoing, it is hard to fathom what the potential new recruits think about contractors.
Yet while this is currently unknown territory it could lead to unexpected change. Of course, whether this will be good or bad is very much yet to be seen.
Rishi Sunak Quit as Chancellor
Some contractor groups seemed particularly glad to see Rishi Sunak bowing out of his post. He is perceived as the main one driving IR35 changes. It is therefore unsurprising that those people were equally unhappy with the news that followed.
That he was one of the contenders for the top spot. Some suggest that whoever takes the Prime Minister vacancy, it cannot spell good news for contractors. Others say things have been rapidly going downhill, from additional taxes to forced use of umbrella companies.
Looked at this way, contractors and freelancers do seem to be somewhat thwarted at every turn. Blame for this is perceived to come from various corners.
Over the Summer, the leadership contest will take centre stage with the two candidates battling it out. Yet, while this contest is being fought, Boris seems determined to stick around in the background. A caretaker government is never a great thing, especially while there is bad blood.
With the summer recess coming fast upon us perhaps the changes to be seen at this time will be minimal. Some will favour one candidate over the other, but the potential benefits for contractors is very much unknown. When the new PM starts and puts down their roots that the truth will come out.
It will be interesting to see then what the new PM does and in what direction their Chancellor goes. Whether it will be Nadhim Zahawi by that time, who is to say? We shall have to wait and see.
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