Spring Statement- What’s happening with IR35?
Tuesday saw the delivery of the Chancellor’s first Spring Statement which gives an update on any progress made since the Autumn budget. The Autumn budget had suggested an imminent shake up to the way IR35 works within the private sector. With that in mind, we were all looking for an update on this.
With news of “more jobs”, “rising real wages”, “declining inflation”, “falling deficit” and “a shrinking debt” the Chancellor’s message had an upbeat tone and general positive message.
Unfortunately the favorable news did not extend into a delivery of any outcome on the private sector IR35 reviews.
Frustratingly it looks like the contractor workforce will have to wait a little longer for an update as the initial Spring Statement made no specific mention of it.
Is this good or bad news?
On Tuesday, contractors and industry experts were suggesting that no news was good news. There were proposals that it’s absence in the Spring Statement was perhaps as a result of contractor lobbying being finally heard.
Alas, it soon became clear that it was just a temporary reprieve; buried in the statement there was indeed reference to the upcoming IR35 reforms with the Chancellor’s written statement saying:
In the coming months the Government will publish:
‘Off-payroll working – a consultation on how to tackle non-compliance in the private sector, drawing on the experience of the public-sector reform. The Government will work with businesses and individuals to mitigate the potential administrative burdens of any future changes.’
Whilst this is not new news it could suggest that an April 2019 roll-out is still on the agenda, if the consultation is released in the next three months it is likely the government will push for this original date.
We will have to wait patiently to see what the outcome is.
In the meantime if you would like to discuss what the changes could mean for you please get in touch with your Walker Smith accountant directly or alternatively please contact one of our Customer Care team on 0161 359 3235 or alternatively email us at firstname.lastname@example.org