Government announces review into IR35

HMRC IR35

 

 

The Government is launching a review into the new off-payroll working rules, known as IR35, that are due to come into effect on 6 April 2020.   

 

 

 

The review will determine if any further steps can be taken to ensure the smooth and successful implementation of the reforms.  It will also assess whether any additional support is needed to ensure that the self-employed, who are not in scope of the rules, are not impacted.

 

IR35 was introduced in 2000 to ensure that someone working like an employee, but through a company, pays similar taxes to other employees.

 

The reforms, announced in the 2018 Budget, are designed to tackle non-compliance with off-payroll working rules by making medium and large organisations in the private and third sectors responsible for determining the tax status of contractors.

 

The news that the government is reviewing IR35 rules, which have come under heavy criticism from contractors who would be most affected, will be welcome, the finer details of the review will also be a blow to those who had hoped that the government might consider repealing IR35.

 

The review will conclude by mid-February.