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IR35 - Breaking News

New Chancellor Kwasi Kwarteng’s ‘mini budget’ on 23 September included a seismic shock by announcing the repeal of IR35 off-payroll legislation Chapter 10 part 2 of ITEPA 2003.

Author: Danny Batey

Announced with much fanfare when introduced into the public sector in 2017, its impact has since been keenly felt in the private sector since its subsequent roll-out into the private sector as recently as April 2021.

This U-turn will not happen immediately but will take effect from April 2023. Until then, public sector bodies and medium or large-sized clients in the private sector will still be expected to abide by the legislation and take reasonable care in meeting their responsibilities.

But this announcement does not mean IR35 will be removed completely – it means that the legislation will revert to its former self under Chapter 8 ITEPA 2003. Therefore, the responsibility for determining whether IR35 applies to relevant engagements and any potential liabilities from making an incorrect assessment, returns to sitting with all PSCs and no longer the end client or fee-payer.

If any of our clients would like to discuss today’s announcement further and to establish how they may be affected, our team of IR35 experts are on hand to guide you through and offer advice. Please contact us at and a member of the contractor solutions team will be in touch.