U.K. Businesses Seek Leniency in Application of Contractor Rules

Businesses in the U.K. are urging the government to be lenient in applying new rules for contract workers, given the lack of time they have had to prepare for the changes.

Tax advisers made the plea on Monday during a session before the House of Lord’s Finance Bill Sub-Committee, which scrutinizes policies in Britain’s annual government budget.

The “off-payroll” rules, known as IR35, aim to ensure that contract workers pay about the same tax and social security contributions as regular company employees. The rules first applied to public sector employers in 2017, and are being expanded to cover ...