IR35 review: It’s now too late for a thorough review of the proposed reforms, say experts

The government has announced a review into changes to IR35 off-payroll working rules, set to come into force on 6th April 2020.

However, specialist insurer Kingsbridge Contractor Insurance has urged recruiters and employers not to postpone their plans to prepare for incoming reforms.

Nicola Hayman, Legal Manager at Kingsbridge, explained, “While we welcome the fact that HMRC has recognised a need to take another look at how these changes will be implemented, there is no escaping the fact that it is now too late for a thorough review of the proposed reforms.

“Furthermore, the Government’s admission that the purpose of this consultation is to make ‘sure that the implementation of these changes in April is as smooth as possible’ confirms that any delay is extremely unlikely.

“We are encouraged by the fact that, in its latest statement, the Government reiterated that the off-payroll working rules ‘do not affect the self-employed, as only those working like employees are in scope’. We also welcome the commitment that the review will assess whether any additional support is needed to ensure that the self-employed, who are not in scope of the rules, are not impacted.”

The Association of Accounting Technicians have also had their say. Brian Palmer, tax policy expert for AAT, commented, “Given all that has happened on the Brexit front during the last twelve months, it is a more than a little disappointing that the Government has not taken the opportunity to press pause on the introduction of IR35 to the private sector, in order to ease the ever increasing compliance burden born by UK businesses at this very challenging time.”

The Association of Independent Professionals and the Self-Employed have also warned that the government’s review into the new off-payroll working rules does not go far enough.

Andy Chamberlain, Deputy Director of Policy at IPSE, added, “The review announced [today] is disappointingly hasty and inadequate.

“Not only has the government not said it will pause the changes, it has also allocated far too little time for a full review and said nothing about selecting an independent chair.

“Such a limited review would leave the freelance sector floundering.

“Right now, across the sector, contractors and freelancers are panicking at the prospect of these disastrous changes.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com