The government’s eagerly awaited IR35 review, was published last week (27th) and confirms it would still be pressing ahead with the changes despite some reservations from businesses and contractors alike.
The biggest change to the review was confirmation of a ‘light touch’ approach, meaning that businesses and contractors will not have to pay for IR35 errors in the first year of the tax changes. HMRC said: “Customers will not have to pay penalties for errors relating to off-payroll in the first year, except in cases of deliberate non-compliance”.
Recognising the concerns of businesses, the government has stated that the rules have not been “fully effective” as “shifting responsibility for determining employment status is a major change for employers and other organisations that use contractors and contingent labour”. The change in approach is designed to “where appropriate to better support affected businesses and individuals.”
The full 23 page review can be found via this link.
Should you have any questions or queries about IR35 and its potential impact on your business, then please do not hesitate to contact us. We have also written a number of articles on the subject which can be accessed here.
Disclaimer
The information was correct at time of publishing but may now be out of date.
