The onus on businesses to perform IR35 status checks on workers has been a headache for many businesses throughout the UK over the past two years and chancellor Kwasi Kwarteng has now pledged to simplify this.
You may be affected by these rules if you are:
- A worker who provides their services through an intermediary (normally their own private company);
- A client who receives services from a worker and pays their intermediary business or uses an intermediary for hire.
- An agency providing workers’ services through their intermediary.
Recent reforms in 2017 and 2021 moved to stop freelancers effectively acting as employees while working through an intermediary. These reforms were controversial and often made it more difficult and expensive for businesses to secure freelance work.
These reforms will now be reversed so that individuals are now responsible for identifying whether they fall under IR35 or not, instead of the businesses engaging them.
The change means self-employed workers providing their service through their own companies will again be responsible for paying the appropriate amount of tax and national insurance contributions.
This reversal is not set to take place until April 2023, so the current reforms will have to be tolerated for a little while longer, but should you or your business require any further support in tackling IR35 legislation, do not hesitate to contact us at [email protected]
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