The new Chancellor, Kwasi Kwarteng, announced surprising news on Friday, 23rd September. In his mini-Budget 2022 speech, he stated that the UK Government intended to repeal IR35 reform in both the private and public sectors from April 2023.
He said the reform imposed “unnecessary costs and complexity for many businesses, and so it would be repealed “as promised by the prime minister.”
Before contractors start celebrating, however, there are two essential things to remember:
- Nothing has been repealed yet, and nothing will be repealed until the next Financial Act – so there is time for ministers to rebel against it.
- The original IR35 legislation will remain after April 2023; the only thing that has been repealed is the reform.
The relevant paragraph in the government’s Growth Plan document states, “From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status, and responsible for paying the appropriate amount of tax and National Insurance contributions. This will free up time and money for businesses that engage contractors, that could be put towards other priorities.”
We will endeavour to keep you updated about the IR35 reforms over the coming months as more information is released. In the meantime, if you have any questions about IR35, please feel free to email Jonathon Webley, Director, at firstname.lastname@example.org.