With today’s announcement by the new Chancellor, Jeremy Hunt, the public and private sector will continue to operate under the current Chapter 10 ITEPA 2003 legislation
Published on 17 October, 2022
Since the ex-chancellors unexpected ‘mini-budget’ announcement last month that the off-payroll working rules were to be repealed from April 2023, the dust has had very little time to settle, with many in the contractor space still coming to terms with the news.
Evidently a lot can happen in the space of a few weeks, and today’s announcement by the new Chancellor, Jeremy Hunt, that the repeal will now not go ahead could very well bring disappointment to many who had cheered the roll back to the ‘old’ IR35 rules under Chapter 8 Part 2 ITEPA 2003.
If we combine this decision with the climb down on the change to the increase in corporation tax, the reversal of the reduction in dividend tax and income tax, the euphoria for contractors working through their own limited company has been short lived.
So for now, pending no further bombshell announcements, the public and private sector will continue to operate under the current Chapter 10 ITEPA 2003 legislation. This means that most end clients will be still responsible for determining the IR35 status for any limited company contractors that they engage, with potential liabilities from incorrect assessments resting with the 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 IR35@markel.com and a member of the Contractor Solutions team will be in touch.