Chancellor Kwasi Kwarteng has announced that the UK government will scrap the 2017 and 2021 reforms to the IR35 off-payroll working rules. It is a great welcoming news for the contractor’s industry and will be introduced from April 2023.
Repealing IR35 reform is a huge victory for contractors. The changes have created havoc for hundreds of thousands of independent workers, along with the businesses that engage them. The Chancellor’s decision is a “huge move” that will offer “freedom” to contractors so that they can work freely and independently.
The IR35 rules were introduced in 2017 to the public section and to the medium and large size entities where each of them become responsible for determining the IR35 status of contractors – the responsibility shifted from the contractor to the end client which resulted in a huge decline in the contractor’s work industry.
Adept Accountants personally think that the changes in rules will results in a big boom in contractors’ business as people will be allowed to work freely and plan and pay their own taxes with potential tax planning and savings options.