Incoming reforms to IR35 should be put on hold until various concerns around the legislation are resolved, the UK recruitment industry has said.
Association of Recruitment Consultancies (ARC) wants MPs to halt the changes, set to be introduced next month, as concerns around them grow.
ARC chairman Adrian Marlowe has questioned the need to “rush ahead” with the proposals when a “full and proper” review of the legislation is yet to occur.
From April 6 2017, public sector organisations will be responsible for deciding whether company contractors should be taxed in the same way as salaried workers or off-payroll staff.
There are concerns that this reform risks causing friction between contractors – who previously decided for themselves how they should be taxed – and the bodies who will be tasked with making the decision on their behalf.
“Where an agency [recruitment] is involved, it will have little knowledge of the relationship between the contractor and hirer,” Mr Marlowe said.
“The hirer will want to take the cheapest and least onerous path, and the contractor will probably press for gross payment to maximise income. It is likely to lead to an unfair outcome.”
“We seek a delay while all the issues are fully considered,” Mr Marlowe added “Delay, perhaps to the autumn, will enable all parties to properly engage and resolve a coordinated, positive approach.”