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Today the UK government announced plans to repeal off-payroll IR35 rules by April 6, 2023.
This will mean that from 6 April 2023, contractors will be in charge of ensuring they pay the required amount of tax and national insurance contributions for the services provided.
The news was revealed as part of The Treasury’s Growth Plan document this morning, following the Chancellor’s mini-budget announcement.
It reads: “The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, workers across the UK providing their services via an intermediary, such as a personal service company, will once again be responsible for determining their employment status and paying the appropriate amount of tax and NICs.”
It is hoped that this move will not only help simplify the tax system, but also ease the financial burden on businesses that engage with contractors and allow them to focus on more urgent matters.
However, there are concerns that this pivot back to the old system could create further opportunity for tax avoidance and non-compliance.
We urge contractors and freelancers to only work with professional advisors when completing their tax returns, to ensure accuracy and mitigate the risk of fraud.
As a provider of interim staff, we understand the gravitas of this news. At present there is no roadmap set by the government as to how this repeal will play out but we aim to keep you updated on the latest developments.
In the meantime, if you have any concerns or queries please get in touch via email at [email protected].