Hunt scraps the scrap – IR35 repeal

That brief moment, when anti IR35 campaigners thought that the IR35 reforms made since 2017 were to be scrapped in April 2023, was short-lived. As with many of the mini-budget proposals put forward by Kwasi Kwarteng, the ‘scrap’ plan, a repeal of the reforms in 2017 and 2021, has itself been scrapped by the new Chancellor Jeremy Hunt.

In a formal statement today 17th October the government announced “The (IR35) reforms will now remain in place. This will cut the cost of the government’s Growth Plan by around £2 billion a year.”

Where does this leave everyone?

“The outcome is no change from the pre-Truss position” says Adrian Marlowe, MD of the recruitment and employment law specialist Lawspeed. “However, it is possible that the government in due course may review the IR35 rules given that Liz Truss said that she would do that. This would probably involve a consultation and with so much else for the Treasury to do this is unlikely to be high on the Chancellor’s list. Even a new Prime Minister (heaven forbid) is unlikely to scrap the scrap of the scrap! Those hoping for a result by April 2023 will be disappointed, but at least now there is some certainty.”

To understand more about IR35 see here and for more information about the scrapped repeal see our recent article, IR35 update – 12 key points about the planned repeal

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