IR35 changes have had a significant impact on contracting practices within the UK. With the Off-Payroll rules being enforced by HMRC, in some cases very aggressively, contractors and businesses have had to be well-prepared to navigate the changes that have occurred since the rule changes came in.
However, there is going to be a reform with the double taxation of IR35 under the off-payroll rules set to come to an end from April 6th, 2024, this will impact the PAYE calculations liability in non-compliance situations.
With HMRC tightening control over off-payroll working rules with the significant changes happening in April 2024, contractors and businesses alike need to prepare for the shift and need to stay up to date.
Contractors Call for Change to IR35
Although in recent survey carried out by insurance company QDOS found that a significant amount of contractors wanted the IR35 to be scrapped, in the up-and-coming next spring budget which will take place in March of 2024.
It is essential for both contractors and businesses to stay informed about these and any upcoming changes, especially if the business model you are working with uses contractors on a casual or permanent basis and take proactive steps to adapt their contracting practices accordingly.
One crucial aspect of these changes is the use of the Check Employment Status for Tax (CEST) tool by HMRC. This tool helps determine whether a contractor falls within the scope of IR35 or not, providing clarity on their tax status.
If you are a contractor or a end user business operating in this area it is essential that you make sure that you stay informed about the evolving landscape of IR35 regulations, to ensure compliance and mitigate any potential risks associated with non-compliance. By understanding and adapting to these contracting changes, stakeholders can proactively manage their engagements within the parameters set by HMRC.
As the spring budget for 2024 approaches many contractors want to see reform or change to the IR35 rules, many contractors really want it to be scrapped altogether.
IR35 CONTRACTING IN 2024