IR35 reform review announced
This week, the Government has announced that it has launched a review of planned reforms. This comes after MPs and campaigners have openly criticised the new rulings as HM Revenue & Customs (HMRC) is set to extend its IR35 off-payroll legislation to include the private sector in April this year.
Under current rules, public sector employers have to assess IR35 and determine whether contractors should be taxed as full-time employees. The proposed reforms will bring the private sector in line with the public sector, where the changes were implemented in 2017.
In a statement published on 7 January 2020, the government announced it had launched a review of the changes to IR35 to ‘address any concerns from businesses and affected individuals about how they will be implemented.
It continued: ‘As part of this, the review will also assess whether any additional support is needed to ensure that the self-employed, who are not in the scope of the rules, are not impacted.’
Nick Woodward, CEO and Founder of the back-office solution for the freelance recruitment sector, ETZ Payments, commented on the announcement: “The review is good news for those who are concerned by the new IR35 rules but it will present uncertainty for workers, recruitment agencies and companies who have already adapted to the changes. Considering that MPs in the Government were openly calling for this review, the fact it has happened so quickly in the new year shows the HMRC’s commitment to this and hopefully, the review and its recommendations will give all players enough time to adjust ahead of April. The Government need to ensure that people have all the relevant, correct information at their disposal to ensure they can be IR35 compliant before we reach April, and hopefully, this review will provide swift clarity to all.”
To find out more about how IR35 affects you, click here to contact ETZ Payments.
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