IPSE says that the rules, commonly known as IR35, are still causing significant disruption for businesses and public bodies needing to recruit freelancers and contractors for their operations.
An IPSE survey of 1300 contractors in early 2024 found that 54% had walked away from an offer of work due to disagreements over the client's IR35 determination.
It says the last government presided over a disastrous tightening of IR35 with the off-payroll working reforms. It is asking the new government to find a 'fairer and more effective way for people to work as freelancers without being subject to endless challenges from their clients and the taxman'.
IPSE also called on HMRC to give taxpayers the support and the Chancellor to end the uncertainty over Managed Service Company legislation.
IPSE's Fred Hick said:
'For the first time since Spring 2010, a Labour Chancellor will deliver a Budget statement to the House of Commons. Government has so far painted a dour picture in the run up to the statement, with the Prime Minister warning that the Budget will be 'painful' – leading commentators to conclude that tax rises and spending cuts are on the way. But after a painful few years for the self-employed, we're hoping government can spare some positivity for the sector.'