Tax experts have previously said IR35 can reduce a worker’s net income by up to 25 per cent, costing the typical limited company contractor thousands of pounds in additional income tax and national insurance contributions.
Ms Kermode said: “HMRC cannot run rough shod over the freelance sector and penalise everyone working through limited companies in blanket fashion and assume that all these individuals are tax avoiders.
“These are the very individuals who bring much needed flexibility to the businesses that engage them on a short-term basis, and, in times of economic uncertainty which our country is facing right now, firms need that flexible option.”
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