To better understand the impact of the off-payroll working rules, known as IR35, HMRC recently produced a report on the short-term effects of the IR35 reform on the private and voluntary sectors. The report is fairly positive and if you took the report at face value – you would believe the roll out of the new legislation was a success.
Issues around off-payroll working rules are likely to continue to rear their head next year as demand for sparse skills increases.
2022 brought a huge amount of turbulence: from the energy crisis triggered by war in Ukraine to legislative U-turns and windfall tax increases creating uncertainty over investments in the North Sea.
Liz Truss’s plans for major projects and new exploration in the North Sea is set to create a surge in demand for experienced contractors in the energy sector, yet the industry is already struggling to recruit amidst a national engineering skills shortage.
Employment and tax experts have roundly hailed the Chancellor’s shock pledge to scrap contentious IR35 reforms.
As the new Conservative party leader takes the reigns, the country will be waiting to see which of the tax cuts and other various legislative ideas promised during the election are put into practice.
The recently published House of Commons Public Accounts Committee (PAC) report into the IR35 reforms has confirmed that the UK needs an effective tax framework to enable businesses to access the flexible workforce.
Oil and gas firms that are not IR35 compliant could soon be hit with “penalty charges” as the ‘soft landing’ period wraps up.
When HMRC introduced changes to the ‘off-payroll working rules’, commonly known as IR35, in April 2021, it promised the private sector a 12 month ‘soft-landing’.
The “sheer scale of disruption” sparked by changes to IR35 rules have surpassed expectations, an employment expert has said.