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ARTICLE · 03 OCTOBER 2022

Off Payroll Working Rules To Be Repealed In The UK

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On 23 September 2022, as part of the Government's ‘fiscal event', the Chancellor unexpectedly announced that the Government plans to repeal both the public and private sector off-payroll working tax...

United KingdomTax
Rachel Hawkins
Rachel Hawkins
Hugh More
Hugh More
Christina Morton
Christina Morton
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On 23 September 2022, as part of the Government's 'fiscal event', the Chancellor unexpectedly announced that the Government plans to repeal both the public and private sector off-payroll working tax reforms introduced in April 2017 and April 2021 respectively. The repeal is expected to take effect on 6 April 2023, although existing rules will remain in force until then.

Why was IR35 introduced?

The off-payroll working rules were introduced to try to ensure that where individuals provide their services through an intermediary entity, most commonly a personal service company, they pay the right amount of income tax and national insurance contributions particularly if that individual would have been treated as an employee (and been taxed accordingly) if they had supplied their services directly. This was intended to work by placing the compliance (and non-compliance liability) on the end user of those services, being public bodies and medium and large enterprises.

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