The End of IR35!

September 2022, and the government’s mini-budget has been announced. Liz Truss made an initial statement earlier this month where she publicly announced her plans to review IR35 reforms. What no one was expecting was for Chancellor Kwasi Kwarteng to declare that IR35 Reforms for both the private and public sectors are to be repealed in April 2023.

I’ll give you a second to let that statement sink in.

The planned repeals to IR35 have caused mixed feelings, with some praising the government for supporting businesses and contractors, whilst others have branded these changes as “messy” and “puzzling”.

The 2017 and 2021 reforms to off-payroll working rules were implemented and shifted the tax law to fall under the responsibility of businesses or their recruitment partner and not the contractors they hire. From April 6th, 2023, contractors working for organisations will be once again responsible for determining their employment status.

Repealing these reforms is said to take the complexity out of the tax system, but time can’t be wasted, and a decision needs to be finalised in order to help businesses, recruitment agencies, and contractors to plan and prepare for April 2023.

So, what do these changes mean for businesses?

To put it simply, contractors are a benefit to businesses and with the announcement from the government this morning businesses have a huge opportunity in front of them to hire contractors.

You save time and money

As a business you don’t need to worry about the traditional expenses that full-time employees have; no paid sickness, holiday leave, pension contributions, or PAYE to administer.

Contractors are flexible

You have quick access to the skills you need, without a long-term commitment of a permanent member of staff. You’re in control of the type of work they carry out, as well as the time it takes them.

They’re specialists

You have a person working with you for one-off projects who are real experts in their field, they’re specialists and the knowledge they have is unmatched.

New perspectives

Contractors bring a new mindset and an external perspective to projects; they report and assess things as they seem them without any connection to the company or the people. They have the power to change the way you operate and conduct business for the better.

Budget certainty?

In these uncertain times, one thing that’s nice to have reassurance on is budget. Contractors have a fixed cost, and a fixed timeframe throughout – making it one constant factor in a time where anything can happen.

The UK economy has, and always will be reliant on contractors . Hiring contractors into your business provides you with the best chance of addressing your needs in a quick, effective and costly way.

The reforms announced today are likely to be remembered as one of the most pro contracting changes made by the government, and we’re excited to see what will happen in the following months in the wake of the mini-budget.

If you want to speak to one of the develop team about hiring contractors, don’t hesitate to get in touch.