News

Repeal of the Off-Payroll Working Rules from April 2023

26 - 09 - 2022

The Chancellor has announced that the Off-Payroll Working rules will be repealed from April 2023.  

Following the UK Government’s Mini Budget on Friday one of the least talked about items was the reversing of the Off-Payroll Working Rules introduced in April 2017 for the public sector and April 2021 for the private sector.

Since April 2021 the responsibility to decide whether a contractor was self employed or an employee has been with the end client engaging them. We are aware of many instances where end clients decided it was easier not to take any risk of an incorrect decision and insisted, regardless of the circumstances, all workers were paid through an umbrella payroll or were employees.

The Chancellor has stated that as of 06 April 2023 these rules are being repealed and the responsibility for deciding whether the contractor is self employed or an employee will revert to the individual contractor.

This is a significant and unexpected change that will be beneficial to those who wish to trade through a Limited Company. The unfairness of the market forcing the genuinely self employed into employment is something we have tried to help all our clients with by offering contract reviews and advice on how to challenge decisions. We at Foremans, therefore, are delighted to see a return to the ‘pre Off-Payroll Working’ IR35 situation.

As contractors become responsible for their own compliance and tax we would anticipate some end clients and agencies reconsidering their current 'blanket' policies on trading with Limited Companies. In turn we anticipate an increase in the choice of contracts available to Limited Companies.

You may have been considering whether to trade through a Limited Company but been put off by the Off-Payroll Working issues. With the repealing of these rules both in the private and public sector now may be a good time to revisit whether you should be working through your own limited company. If a Limited Company is your preferred option the benefits are not only tax efficiency but also the limited liability for your personal assets. In order to help with your decision-making please contact us to request a detailed trading options illustration and to discuss the other options available, such as working as a Sole Trader or through an Umbrella Payroll Company.

Please do not hesitate to contact Foremans on 01244 625 500 if you wish to discuss any of the above or any other matter.