2017 and 2021 IR35 reforms to be repealed

27 September 2022

The Growth Plan sets out first steps in taking complexity out of the tax system. The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023.

From this date, workers across the UK providing their services via an intermediary, such as a personal service company, will once again be responsible for determining their employment status, and for paying the appropriate amount of tax and NICs. Kwarteng confirmed in his speech: “… we will continue to keep compliance closely under review.”

Payroll professionals will no longer be required to add ‘deemed employees’ to payroll software to account for income tax and employers National Insurance contributions. Nor will they be required to provide P60’s to any off-payroll workers at the end of 2023/24.

HM Revenue and Customs (HMRC) has confirmed for services provided before 6 April 2023 the current rules will apply, even if payment for those services is made on or after 6 April 2023. Legislation will be brought forward in due course.

The CIPP will update further on the impacts as more information is provided by the government.

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