IR35 changes having a negative impact on London Underground project.

With the IR35 public sector changes having been put in place earlier this year, it seems that there has been quite a negative impact in many areas, as contractors are choosing to look elsewhere for work. As a direct result of this, there are talent shortages being found across many sectors – not long after the changes were made it was made apparent that the NHS was suffering with a lack of medical professionals willing to risk their IR35 status, and now a new report has revealed that it has also affected the London Underground.

Transport for London (TfL) have confirmed that severe delays to the renewal of the London Underground is a direct result of the IR35 changes. The TfL’s report says: ‘A significant number of critical weld project employees left TfL as a result of IR35 – a revised tax legislation affecting public sector contractors. We are currently working on mitigations to reduce the impact on the project.’

Andrew Chamberlain, IPSE’s (Association of Independent Professionals and Self-Employed) Deputy Director of Policy has responded to this latest news, “This report confirms what we have known all along. The changes to IR35 have damaged the ability of public sector organisations to attract the talent they need and deliver projects on time.”

“There is mounting evidence that the IR35 changes in the public sector are causing significant disruption. IPSE is renewing its call for a comprehensive review of the impact of this measure across the public sector.”

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