Off-Payroll Working: treating people fairly, welcomes the government’s decision to delay the extension of off-payroll working reforms into the private sector by a year, but notes it has already caused widespread disruption. The committee heard evidence that employers were making blanket status determinations about contractors without properly assessing whether they fell into the remit of the rules, and had terminated contracts early. Many contractors had been left in a “halfway house”, not enjoying the rights that come with employment, but were being considered employees for tax purposes. “In short, they are ‘zero-rights employees’,” the report says. Lord Forsyth of Drumlean, chair of the House of Lords Economic Affairs Finance Bill Sub-Committee, said: “Our inquiry found these rules to be riddled with problems, unfairnesses, and unintended consequences. The potential impact of the rules on the wider labour market, particularly the gig economy, has been overlooked by the government. It must devote time to analysing all of this. A wholesale reform of IR35 is required. “Contractors already concerned by these uncertain times now have the added worries of paying more employment taxes and having their fees cut by clients making additional National Insurance Contributions. Also concerning is the number of companies getting rid of contractors in anticipation of the implementation of these new rules.” The committee urged the government to commisThe IR35 rules are ’riddled with problems, unfairnesses, and unintended consequences’, according to a House of Lords committee looking into the impact of off-payroll working reforms.