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Government services will be decimated if proposed reforms to IR35 in the public sector go ahead, with 80% of contractors planning on abandoning the sector rather than accepting a contract inside IR35. The Government will also lose out on £115m in taxes and could face an increase of £610m rise in costs per year for hiring contractors if these workers are put on the payroll.

These are just some of the findings to come out of a survey of over 500 contractors conducted by ContractorCalculator, the leading online resource that provides expert advice and information to some thousands of contractors every month.

Dave Chaplin CEO and founder of ContractorCalculator commented: “We’ve always said that the proposed measures are fundamentally flawed and now we have the figures to prove it. HMRC’s naïve conviction that contractors are going to roll over and accept these new conditions is going to have disastrous unintended consequences. Four out of five...

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