IR35 Tax changes

The Government announced a review of changes to off-payroll (IR35) working rules on 7 January 2020 to determine if any further steps can be taken to ensure the smooth and successful implementation of the reform due to come into force in April 2020. The review will also consider whether any additional support for businesses is needed to ensure that the self-employed, who are not in scope of the rules, are not affected. The review will conclude in mid-February 2020.

It is important to remember that the off-payroll working rules do not affect the self-employed; part of the review will consider whether this is clearly understood by businesses in their implementation of the reforms. In parallel to the review, HMRC will be stepping up their efforts to support individuals and businesses in preparing for these changes and raising awareness of the reform.

The Government is committed to supporting self-employed professionals and consultants. From April 2019, the UK will have increased its Personal Allowance by over 90% in less than a decade. The self-employed have also been given access to the full rate of the new State Pension, worth over £2,000 a year more to a self-employed individual than under the previous system.

It was great to meet with constituents today at the IR35 reform event in Westminster. Thank you for taking the time to speak to me and share your experiences. I have spoken to the Chancellor about this previously and will continue to liaise with constituents effected by these changes.