Katy Ponsford explains IR35 rules and their implications
IR35 are the rules which apply to contractors who provide their services through their own limited company. As part of the current chancellor’s reversal of many aspects of his predecessor Kwasi Kwarteng’s mini budget, the government’s plan to simplify the IR35 rules from April 2023 have been scrapped. Therefore, IR35 is here to stay.
Many businesses, understandably, jumped for joy at the prospect of not having to comply with the IR35 rules, lifting what is considered to be a costly administrative burden on employers. The change would have resulted in contractors once again carrying the responsibility for determining their employment status and associated tax.
As a result of the U-turn, employers must c...