Proposed IR35 Repeal scrapped
As you will be aware on 23 September during the “mini-budget”, the then Chancellor, Kwasi Kwarteng announced plans to repeal Chapter 10, ITEPA 2003 (also known as IR35 in the Public and Private Sector) taking effect from 6 April 2023.
This meant that from 6 April 2023, contractors providing services via their own limited company (“PSC”) would once again become responsible for determining their own employment status and paying the appropriate amount of tax and National Insurance contributions (“NIC”). End hirers and recruitment agencies alike would no longer bear such responsibilities.
The announcement came as a surprise considering the ‘supposed’ success of the legislation which was enacted in the Public Sector in 2017 and extended into the Private Sector in 2021, after originally being postponed in 2020 due to the COVID-19 Pandemic.
Since the mini-budget there has been much discussion about whether or not the repeal will come to fruition and if it would receive Royal Ascent.
Today, the new Chancellor, Jeremy Hunt has reversed a number of measures proposed during the mini-budget including the repeal of the off-payroll working IR35 reforms.
No change for end-hirers, the responsibility stays with you!
Whilst the narrative from the Government is changing quickly and doubts remain over whether IR35 in the Public and Private sector will remain in the longer term, in effect nothing has changed and End-Hirers will continue with their IR35 obligations beyond April 2023. End-Hirers will continue to be responsible for assessing their Contractors and communicating the IR35 Status in the form of a Status Determination Statement (“SDS”) to fee payers and contractors operating via their own PSC.
These are uncertain times, but we do welcome much needed certainty on the topic of IR35 enabling organisation to move forward and ensure they continue with their robust policies and process for the foreseeable future.
Should you wish to discuss this further or have any further questions please feel free to contact us.