In the Chancellor's recent and radical 'mini-Budget', he announced that reforms to off-payroll legislation (IR35) are to be repealed as he believed IR35 was holding business back ...
And many businesses probably are too. The new Prime Minister Liz Truss has kept her promise to repeal the reforms. In her view, they had a damaging effect on both businesses and contractors over the past five years and they needed to go.
There were a number of structural deficiencies to IR35, which came into force in April 2000, and many believe it was flawed from the start. Industry observers felt the reforms in 2017 and 2021 became a form of glue that prevented growth in the economy and applaud the Government for its decision.
The one thing repealing the reforms will do is free up time and money for businesses that engage contractors, which can now be put towards other priorities. It will also minimise the risk that genuinely self-employed workers are negatively impacted by it.
it is unclear what position HMRC will take when dealing with businesses who have inadvertently fallen foul of the IR35 rules between now and April 2023.
I will let you know when I hear more.
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