Government U-turns on cancelling IR35 off payroll rules
Only a month or so ago, the government announced that it would repeal the IR35 off payroll rules from the start of the new tax year in April 2023.
But those plans have now been scrapped by the new chancellor, Jeremy Hunt.
This means that most businesses and organisations will need to continue carrying out status determination statements when engaging individual consultants via intermediaries such as personal service companies, and to pay any tax required.
If your organisation gets the status determination wrong, it will be liable for the tax and national insurance contributions. The 12-month grace period (which provided some leniency for organisations making genuine mistakes) ended in April 2022.
This means that if you make a mistake, you’ll also have to pay penalties and interest.
To find out how we can help you make the right call, please contact us for further advice.