Rishi Sinak, the UK chancellor of the exchequer, attempted to soften the effects of IR35 but this has failed. Despite the number of concerns raised by the businesses and contractors that this upcoming legislation will affect, it has been said that his comments showed that the Treasury has no intention of making any meaningful changes to the policy.

The Government published a ‘Review of changes to the off-payroll working rules: report and conclusions’ which confirmed their fears.

What does the review say?

In a nutshell:

• The reform is still going ahead as planned with no delays
• HMRC has said its a ‘soft’ launch with no action to be taken against ‘genuine’ IR35, i.e. no penalties for errors relating to off-payroll in the first year, except in cases of deliberate non-compliance.
• The rules will only apply to services carried out from 6th April 2021 onwards.

This is in line with the chancellor’s comments last week when he said: “I’ve spent time with HMRC to ensure they are not going to be at all heavy-handed for the first year to give people time to adjust as well which I think is an appropriate and fair thing to do”.

A Treasury statement released after the chancellor’s remarks said: “We recognise that this is a significant change for businesses, and as the Chancellor has said, HMRC wants to take a supportive approach to help businesses to apply the rules correctly going forwards.”

So, it looks like focus and efforts are on a smooth implementation of IR35 and supporting businesses with the change, rather than changing the policy itself.
What does it mean?

This simply means, continue preparing for the 6th April 2021 as agencies and end-user companies still need to act and fast.

Whether you are an Agency or a Contractor, we believe it is important for you to continue to prepare for the introduction of IR35 on the 6th April. This includes finding and registering with a dedicated, supportive, and compliant IR35 umbrella company (just like us!) that delivers excellent service and support for you on a long-term basis. We have partnered with well established businesses set up to assist us and yourselves throughout your contracting lifetime to ensure you are always in the best position for your individual situation.

If your client has deemed that you are ‘inside IR35’ and you are unhappy with this, you should seek professional advice from your accountant or professional business advisor.

Let us help you?
For advice, support and answers to your queries please contact us on:
Phone: 01727648666
Email: info@imperium-cs.co.uk
Website: www.imperium-cs.co.uk

Just ask for the welcome team and you will be put in touch with your new point of contact.
https://www.theguardian.com/uk-news/2018/oct/29/ir35-tax-clampdown-is-budgets-biggest-new-revenue-raiser Article