Off payroll about-face

TLDR

In our previous article, we wrote about the off-payroll reforms being repealed. Now that repeal has been repealed. To become less confused by it all, read on.

On again / off again for the off payroll reforms

Reforms to the off-payroll working rules were introduced to remove the widespread non-compliance with IR35. They were introduced in 2017 for the public sector, and 2021 for the private sector.

In a nutshell, these reforms made the end engager responsible for determining the IR35 status of any contractors they engaged. Understandably, engagers took a highly risk-adverse stance.

Then, just a couple of weeks ago, those off payroll reforms were announced as about to be repealed by the short-lived duo of Truss and Kwarteng. This news, when bundled in a ‘mini-budget’ sent shockwaves through the entire economy.

Subsequently, Truss and Kwarteng are no more, and Rishi Sunak (the former Chancellor) is our new PM. In the meantime, the repeal was repealed by Jeremy Hunt.

Will the decision be revered again?

It’s possible. But incredibly unlikely, given the political consequences for Truss and Kwarteng… And the fact that Sunak, now PM, was the one who introduced the reforms in the first place. They look decidedly set to stay. When the repeal was announced, it was hailed as a massive victory by some. But the repeal was only ever for the off payroll reforms (which determine who decides if a worker is ‘in or out’ of IR35)… And IR35 is still here to stay.

So… Did we learn anything?

Every day is a school day. They key takeaways with this brief rollercoaster are:

IR35 has been around a couple of decades.
IR35 still exists and needs to be followed.

If you need any advice with your workforce management, talk to us today.