The shake-up in payroll rules announced in last week’s mini-budget should provide a significant boost in jobs for skilled workers such as computer consultants and financial sector workers, experts said.
April sees the repeal of IR35 legislation that forces many formerly self-employed workers to be treated as employees by companies wishing to use their services.
This is expected to have a huge impact in areas such as IT consulting, where workers often choose to rent out their skills to various firms rather than just one main employer.
Boost: The repeal of IR35 legislation, which forces many previously self-employed workers to be treated as employees by companies, comes in April.
It will also impact accountants, tax and finance legal experts who will be called upon to revise contracts for employers and the self-employed who need to take into account rule changes.
This legislation has cost the industry millions of pounds over the past few years.
Seb Maley, chief executive of tax consultant Qdos Contractor, says: “This is music to the ears for those who don’t want to be locked into a nine-to-five one-job desk but want the flexibility to work for themselves.” and many others. It also relieves companies of the legal and financial responsibility to treat them like employees.”
Under IR35, contractors working for a company are often subject to the same income taxes as employees, even if they don’t always have the same employment rights, such as sick leave and vacation.
It was introduced for those working in the public sector in 2017 and in the private sector in 2021.
Penny Simmons, legal director at law firm Pinsent Masons, says: “The rule break will have a positive impact on many businesses across the country, but it will cost many millions of pounds to rewrite the compliance rules yet again. .’
Earlier this year, a report from the National Audit Office on Expenditure Oversight indicated that a “significant investment” is required to ensure companies comply with IR35 rules.
But new chancellor Kwasi Kwarteng said the repeal of IR35 is not only about saving companies money, but also about removing the complexity of the tax system.
Mayli says: “This is a real government statement of intent to support small, often single-person groups that are not always listened to.”
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