IR35: Repeal halted

The new Chancellor, Jeremy Hunt, announced in his speech this morning, that changes to the IR35 (or “off-payroll working”) system brought in over the last five years will NOT be reversed as promised by former Chancellor (Kwasi Kwarteng) in his “mini-budget”.

In our previous update on the IR35 regime, we provided an update on the news that, under then Chancellor’s 23 September “mini-budget” proposal, the 2017 and 2021 regime changes were to be repealed and that all responsibilities to make status determinations for individual contractors were to revert back to being that of the individual contractor/personal services company (“PSC”).

However, this proposal has been shown the door along with the former Chancellor. Mr Hunt has scrapped the proposed changes and returned the status quo. Meaning, among other things, that end-user clients will still be liable for PAYE and/or NICs if their status determination is incorrect.

If you require further advice on this or any other employment-related topics, please reach out and a member of our experienced employment team will be happy to help.

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