A bit like the UK Exit from the EU, the IR35 debate is still rumbling on with industry applying pressure still to get the implementation overturned or at a minimum diluted somewhat.
It appears that over the weekend the new Chancellor Rishi Sunak has bowed at least in part and promised that the enforcement of the changes will not be “heavy-handed”.
The guiding light around the implementation of the IR35 legislation is to prevent tax avoidance from those contractors who under normal circumstances would be deemed an employee. So equalising the differences in income taxation between the contractor and the employee.
Chancellor Sunak in a speech over the weekend said: “I have spent time with HMRC to ensure they are not going to be heavy-handed for the first year to give people time to adjust as well which I think is an appropriate and fair thing to do”.
A review of the legislation was undertaken whilst Sajid Javid was Chancellor. In his speech, Chancellor Sunak referred to this review and suggested that some “tweaks and improvements” are being made to ensure a smooth transition period.
There is now an expectation that the results of that review will be published prior to the budget on 11 March.
