This petition was submitted during the 2019-2024 parliament
Rejected petition Ban inside IR35 Contractors "Employers NI"
What is main purpose of inside IR35?
IR35 is to make sure that contractors working in the same way as permanent full-time or part-time employees pay the same tax and national insurance as an employee to crack down on tax avoidance.
More details
IR35 defeats the object of fair share of tax and NI contributions. Although the Tax & NI contributions are same for both Permanent full-time and a Contractor, Contracts have to pay addtionally "Employers NI" contributions and this is not fair. Contractor is worse off than permanent employee working in the same way.
An example:
For a £50K gross income, a permanent employee take home after Tax and NI contributions is approximatly £37,663.96, where as a contractor take home is £31,982.92.
This petition was rejected
Why was this petition rejected?
It’s not clear what the petition is asking the UK Government or Parliament to do.
We understand you're concerned about National Insurance (NI) rules for contractors, however it's not clear whether you want contractors to be exempt from paying any NI or whether you want employers' National Insurance contributions to be paid by someone else.
You might like to sign this petition, which calls for a similar action: https://petition.parliament.uk/petitions/582935
We only reject petitions that don’t meet the petition standards.