The 2017 and 2021 IR35 reforms will be repealed from 6 April 2023, Management in Practice reports.
In the government’s new ‘Growth Plan’, authors write that: “Workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and National Insurance contributions.
“This will free up time and money for businesses that engage contractors, that could be put towards other priorities. The reform also minimises the risk that genuinely self-employed workers are impacted by the underlying off-payroll rules.”
Under IR35 rules, businesses (such as GP partnerships) hiring contractors are responsible for determining their employment status, rather than the workers (such as GP locums) providing services. From 6 April, independent contractors providing services through an intermediary will become responsible for determining their own employment status and paying appropriate rates of tax and national insurance.
Dr Richard Fieldhouse, NASGP chair, said: “IR35 is like the Krebs Cycle; it only makes sense for a few minutes. Unlike the Krebs Cycle, the rules seem to change on a regular basis.
“Although this change is welcome, confusion around IR35 is endemic, particularly whilst full details of this change are still not known. So in the meantime, we recommend speaking to your specialist medical accountant before making any changes in your employment status, and keep an eye on our regular weekly emails from NASGP for updates as they happen.”
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