Good news for UK tech contractors as govt repeals IR35 tax rules
The UK government has announced plans to repeal the controversial reform to off-payroll taxation, a set of rules which applied to IT contractors who move between companies.
IT contractors may be relieved the reforms to the tax rules are set to be repealed but would be forgiven for being bewildered at the U-turn and the needless paperwork accommodating the reforms have introduced. "These onerous reforms were never going to work and were flawed from the start. The new version of IR35 has simply served to pour glue on the economy and prevent growth. The Chancellor has done the right thing and removed an unnecessary burden for firms of trying to solve a complex riddle every time they hire a worker."
Contractors found to be within the scope of the legislation – i.e. inside IR35 – will have to pay more tax than they might expect.