UK Contracting: IR35 will be repealed in April 2023

Kwasi Kwarteng, Chancellor of the Exchequer in the UK, has announced that the IR35 reform will be reversed to pre-2017 rules from next April.

The 2017 and 2021 reforms to IR35 (the off-payroll working rules) will be repealed from 6th April 2023.

From this date, limited company contractors will once again be responsible for determining their employment status and paying the appropriate amount of tax and National Insurance Contributions (NICs). End clients will still have a legal obligation to determine status until then, however, after 6th April 2023, the responsibility will move back to the contractor.

Despite the huge cost of reform to businesses, we believe repealing IR35 reform will be a huge positive for contractors and flexible workers as well as for those companies who use their services.

Digitalent will be issuing guidance over the coming months to help support our UK clients and contractors in advance of these changes.

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