The Chancellor of the Exchequer, Jeremy Hunt, has chosen to scrap the plans to repeal the Off-payroll IR35 Reforms, which Kwasi Kwarteng previously announced in his mini-budget on 23 September 2022 and which would have taken place in April 2023.
The Conservatives Growth plan indicated that repeal would free up time and money for businesses that engage contractors, that could be put towards other priorities, and that it would have also minimised the risk that genuinely self-employed workers are impacted by the underlying off-payroll rules. It was felt to be a sensible initiative and would have been a significant step forward for the UK’s army of self-employed people.
IR35 damages the flexibility of the UK labour market, which is key to economic growth. Many contractors left the sector after risk-averse businesses stopped engaging them. With IR35 now remaining in play, businesses must continue to prioritise compliance. The legislation is complex and navigating it can be a challenge, but with the right approach can, in fact, be managed.
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