Posted Date: 27th September 2022

The recent reforms to the off-payroll rules, known as IR35, are to be axed from April 2023, following the publication of The Treasury’s Growth Plan document.

 

These rules were first introduced to the public sector in 2017, followed by the private sector in 2021 for medium and large companies, which shifted the responsibility of assessing the status of the self-employed worker to the company engaging their services.

 

Outside of IR35 refers to those who are genuine self-employed workers or contractors, those inside IR35 are workers who are treated more like an employee, and should therefore be taxed like an employee.

 

As of April 2023, the rules will still apply, however the responsibility will return to the self-employed individual or contractor, to ensure they are paying the correct amount of tax.  

 

Although there is still a risk to businesses if they are caught paying self-employed workers and contractors off-payroll, when they know for a fact that they should be taxed as an employee.

 

This change has been made to save businesses time and money and to prevent genuinely self-employed workers from being negatively impacted by the rules.

 

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