There have been many changes within the government over the recent weeks and months but one that may have gone unnoticed by many is the repeal of a promise made to simplify businesses securing freelance work. We recently posted a blog following a pledge from now ex-chancellor Kwasi Kwarteng about his promise to reverse reforms around IR35 status checks on workers.
Like many things throughout the past 8 weeks, this appears to have changed once more. The new Chancellor, Jeremy Hunt, has confirmed that the off-payroll working rules will remain in place, as last month’s mini-Budget was all but cancelled.
As a result of this latest U-turn, contractors’ clients will remain responsible for determining IR35 status and the fee-paying party will keep the liability.
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.
We understand that a further mini budget will be released in the coming weeks and we will await with anticipation to see if any further reforms or changes are promised.
Should you or your business require any further support in tackling IR35 legislation, do not hesitate to contact us.
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