One of the major issues with the IR35 taxation legislation is that it is too complicated for those not trained in law, according to an expert.

Contractor Collective says that IR35 is unenforceable as it took the type of employment law typically used by legal experts and expected the same of contractors and tax officials. Tests of employment are just too complex to work when applied to an everyday taxation issue.

In addition, says the website, the effectiveness of IR35 relies in a large part on contractors deeming themselves within its boundaries.

"That contractors should rush forward to voluntarily sacrifice up to 25 per cent of their income in order to comply stretches credulity, although many contractors initially did just that out of ignorance," adds the article.

Meanwhile, David Rodger, managing director of the Debt Advice Foundation, has said that planning ahead is essential and that contractors should save up, not overstretch their finances and avoid committing to large amounts of credit.