WHAT DOES A CONSERVATIVE GOVERNMENT MEAN TO THE OFF-PAYROLL REFORMS?
With the Conservative Party now holding a majority in Parliament, we will have to wait and see if the Chancellor keeps his word regarding a review of the off-payroll (IR35) reforms.
When interviewed by Radio 4’s Money Box programme earlier this month, Sajid Javid stated that there would be a review of the proposed reforms if the Conservatives won the General Election.
He told the programme: “One thing in particular I want to look at is the proposed changes to IR35, these are the tax rules that apply to many self-employed people, particularly those that work as consultants… I want to make sure that the proposed changes are right to take forward so we will be having a review of those proposals and changes as part of our wider self-employment review.”
We are mindful that the reforms would have a significant impact on the UK’s contractor workforce. Chris James, Director of Accountancy Services here at JSA, is a prominent speaker on tax issues and has made representation on behalf of our customers and in his capacity as Chairman of the Freelancer and Contractor Services Association to HMRC, the Office for Tax Simplification and other government departments.
The proposed reforms are due to come into effect in April 2020 so if a review is going to take place, it would need to happen quickly, so it’s wise to continue to prepare for the reforms going ahead in their current guise.
We will continue to monitor the situation and keep you informed.
Contractors – please keep an eye on our blog.
Employment agencies – please download our Off-payroll Reforms Guide for Agencies.
If you have any queries about any aspect of IR35 or the reform and would like to speak to a member of our expert team, please get in touch.