The Chancellor has today committed to repealing the Off-payroll legislation, which were supposed to reform IR35, but instead held businesses back. The IR35 Reforms, which rolled into the public and private sectors in 2017 and 2021 respectively will no longer apply from April 2023. Instead, the original rules will remain, and contractors will be responsible for assessing their own tax.
Commenting on the move, Dave Chaplin, CEO of IR35 Shield said:
“Today, contractors and businesses will be celebrating as Liz Truss and her government have not only kept to their promise but gone further and repealed a legislation that has had a damaging effect on business and contractors’ livelihoods for the past five years.
“These onerous reforms were never going to work and were flawed from the start. The recent Court of Appeal Atholl House case further highlighted the structural deficiencies of the legislation.
“The new version of IR35 has simply served to pour glue on the economy and prevent growth. The Chancellor has done the right thing and removed an unnecessary burden for firms of trying to solve a complex riddle every time they hire a worker. Today’s bold move by Kwasi Kwarteng may well have given the Conservatives a chance of winning the next general election.
“The Stop The Off-payroll Campaign I personally ran for four years spelt out the punitive effect that the legislation would have and it came to pass. My final word to the government on the matter is ‘I told you so – and finally you listened.’ “
UPDATES - VIA LINKED IN
Dave Chaplin: "For regularly, daily, updates on the repeal of Off-payroll working as we head towards April 2023, please follow me on LinkedIn."