Self-employed risk losing jobs due to new legislation

Self employed workers risk being laid off because of new government laws.

The new IR35 legislation, which comes into force in April, means companies must take responsibility for the taxes of the contractors that they hire.

But this has led to some companies axing workers because they are worried about contractors getting their taxes wrong.

Denis Wilson, from Bolton, is self-employed and works as an aircraft engineer. He says he was laid off by the company he worked for because of the new law.

“I’ve been laid off by the company I’ve been with for nine years,” he said.

“Work now is difficult to find as a contractor in the UK and I am searching now for a new position but I have another one that starts at the end of February, I have had over a month unpaid.”

The new rules – which come into law on April 6 – mean all public authorities and medium and large sized companies will be responsible for deciding the employment status of workers.

Some rules already apply to public sector companies but the new move means more private sector companies need to apply them.

The rules apply to all public and private sector companies that meet two or more of the following conditions:

  • You have an annual turnover of more than £10.2 million.
  • You have a balance sheet total of more than £5.1 million.
  • You have more than 50 employees.

Self-employed individuals that are working through their own companies for clients’ risk being affected by the new rules.

Individuals that are due to be affected by the new legislation will hear from the company they work for, determining their career’s future.