The Death of IR35?

So it finally happened...

Luckily I was in hospital when I heard the news, so they managed to resuscitate me pretty fast... (actually I was visiting as my daughter had injured herself at the gym the other day).

As ContractorCalculator.co.uk reported....

The Chancellor has today committed to repealing the Off-payroll legislation, which were supposed to reform IR35, but instead held businesses back. The IR35 Reforms, which rolled into the public and private sectors in 2017 and 2021 respectively will no longer apply from April 2023. Instead, the original rules will remain, and contractors will be responsible for assessing their own tax.

This is welcome news for contractors and aspiring contractors, I bet many of my colleagues clients and group members can't quite believe it either...

If I am honest I didn't think this would happen...

Maybe a few changes here and there, but a complete reversal of recent years rulings... wow!

I firmly believe this is what UK PLC needs right now...

More contractors... more contractors delivering valued, meaningful work, utilising their vast experience, passions and abilities to help businesses achieve what they need to achieve in the fastest possible time, and getting paid accordingly, not having to pay all the penalties they have had to endure over the past few years...

I know many people who have ditched the contracting life due to IR35 reforms...

Some haven even left the country.

How sad is that?

What annoyed me even more than double-NI charges, apprenticeship levy, inside IR35 blanket bans by many companies (with no backbone to determine IR35 status correctly and simply avoiding all risk) is the damage this would do to UK entrepreneurship...

I know running a LTD with a contracting PSC isn't running a "true business" as such...

But it's a start.

It gets you into running payroll, doing VAT returns, managing Corporation Tax, expenses, dealing with Companies House, accountants, and for some people it inspires them to do more, to hire other people, to think like a real business, to grow...

How many businesses start off with just 1 person? A lot I would guess...

mighty oaks from little acorns grow

A one-man business becomes a 2-man business, becomes a 5-man business etc...

I haven't read the full details yet, but the true impact will no doubt be seen over the coming weeks and months, and hopefully the UK contracting market can recover...

And flourish.

Because that's what we need here in the UK...

More mighty oaks.

All the best,

Dave

#itcontractingacademy #ir35 #itcontracting ?

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About the Author:

David Gerrish has been an IT Contractor since 1996, working all over the UK, Europe and further afield in locations such as Singapore, Hong Kong and Australia.

Dave's?IT Contracting Academy?Facebook ?&?LinkedIn ?groups have thousands of contractors and aspiring contractors as members, making them invaluable communities for IT professionals seeking advice, support and to network with one another.?