The Mini-budget announcement that the IR35 legislation is to be simplified has been very much welcomed by both contractors and businesses.
The 2017 and 2021 IR35 reforms have been heavily criticised for becoming too complicated, which led to many workers being given the wrong status and resulted in some having to pay more tax and missing out on self-employed benefits.
The latest changes were especially met with some concerns, as it then became the responsibility of the client to determine a worker’s status – with many choosing a blanket approach.
Andy Chamberlain, Director of Policy at IPSE, commented, “We are delighted that the new Chancellor agrees with what we have been saying for years – that the 2017 and 2021 reforms create unnecessary complexity for contractors and businesses. It is with huge relief that we welcome this dramatic shift in government thinking”
“As delighted as we are with the news, we remain concerned that the underlying IR35 rules will stay in place, and we hope to work with the government to make further progress on this issue in the weeks and months ahead.
“But for now, this is a watershed moment and will be a tremendous boost to thousands of contractors who have been unfairly penalised by these damaging rules.”
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