IR35 Reform Repeal – Updated 17th October 2022

Kwasi Karteng’s recent mini budget announcement as Chancellor included, amongst major tax changes, updates to the off-payroll working rules, otherwise known as IR35. Having analysed the commentary and implications from the 22nd September mini-budget, it is important to understand that the that the initial changes were *not* a repeal of IR35, rather that determination and tax management would have returned to being the responsibility of the employee/self employed contractor, rather than the client receiving the services.

Following today’s announcement from Jeremy Hunt, the heralded IR35 reforms are now not expected to go ahead as planned in April 2023, meaning that off-payroll working determinations will remain with clients receiving any services from contractors and the self- employed.

Whilst this may not be surprising news to most, and current way’s of working and navigation of the IR35 compliance landscape is unlikely to change, we understand that for some, this uncertainty can be unsettling and may signal an opportunity for organisations and businesses to review their tax affairs and engagement models of any contractors. We at RPS are therefore committed to supporting contractors, businesses and organisations through these changes, and signposting guidance and resources to support remaining IR35 compliant.

If you’re a contractor, looking for a new project or a business looking to engage contractors, please get in touch to understand how our expert teams can help you engage contractors in a cost effective and compliant way that reduces your risk exposure and delivers your business outcomes.