The Autumn Statement 2023

[andromedan]

HMRC have today confirmed that they will be making a change to the operation of the off-payroll rules. From 6 April 2024, end clients who are found by HMRC to have made an incorrect “outside” IR35 status determination will be able to off-set the tax already paid (by the PSC and its director/shareholder) against their tax bill. This will significantly reduce the potential risk associated with end clients engaging with contractors on outside IR35 contracts and may go some way to reducing the number of end clients issuing blanket inside IR35 determinations or blanket banning the use of PSCs in their supply chain.

Please find the source and the link below: clause is 5.50
https://assets.publishing.service.go...essible_v3.pdf

5.50 Off-Payroll Working (IR35) – calculation of PAYE liability in cases of non-compliance – The government will legislate in the Autumn Finance Bill 2023 to allow HMRC to reduce the PAYE liability of a deemed employer to account for taxes paid by a worker and their intermediary on payments received where an error has been made in applying the off-payroll working rules.

[jamesbrown]

HMRC have today confirmed that they will be making a change to the operation of the off-payroll rules. From 6 April 2024, end clients who are found by HMRC to have made an incorrect “outside” IR35 status determination will be able to off-set the tax already paid (by the PSC and its director/shareholder) against their tax bill. This will significantly reduce the potential risk associated with end clients engaging with contractors on outside IR35 contracts and may go some way to reducing the number of end clients issuing blanket inside IR35 determinations or blanket banning the use of PSCs in their supply chain.

https://assets.publishing.service.go...essible_v3.pdf

You may want to source that quote, because I highly doubt it came from gov't, what with "blanket inside IR35 determinations" aka assessment without reasonable care being unlawful. Assume that was from a commentator. Either way, it's nonsense. This merely avoids double-taxation of the same income, not zero risk for fee payers and end clients (or, indeed, contractors).

[jamesbrown]

Good that they've closed the loop on that, but it's relatively small potatoes.

[jamesbrown]

Anyway, as predicted, a woeful AS for traditional contractors, as we've come to expect. I'd be very surprised if many contractors were voting for the Tories next time.

[andromedan]

You may want to source that quote, because I highly doubt it came from gov't, what with "blanket inside IR35 determinations" aka assessment without reasonable care being unlawful. Assume that was from a commentator. Either way, it's nonsense. This merely avoids double-taxation of the same income, not zero risk for fee payers and end clients (or, indeed, contractors).

Yes I found that from another forum but I put a quote to the original one.

Frankly, I'm not sure if that change has any impact.

Anyway, as predicted, a woeful AS for traditional contractors, as we've come to expect. I'd be very surprised if many contractors were voting for the Tories next time.

Are we going to have a change even with a different government?

[malvolio]

Are we going to have a change even with a different government?

Given this is all driven by the Treasury and a bunch of quangos, what do you think?

[jamesbrown]

Are we going to have a change even with a different government?

For contractors, unlikely, more of the same. More generally? The opposition certainly looks a lot more competent and, either way, the Tories need to be given a thrashing to remember.

[andromedan]

Given this is all driven by the Treasury and a bunch of quangos, what do you think?

Well, I think the party is over.

Additionally, when you search for IR35 on Twitter/X, you will find that 10 out of 10 comments are complaints.

[vetran]

You may want to source that quote, because I highly doubt it came from gov't, what with "blanket inside IR35 determinations" aka assessment without reasonable care being unlawful. Assume that was from a commentator. Either way, it's nonsense. This merely avoids double-taxation of the same income, not zero risk for fee payers and end clients (or, indeed, contractors).

pretty sure that was what was requested by a judge in a tribunal when HMRC said oh if we get it wrong then the contractor doesn't get any money back. Its not something they volunteered.

[BigLadFromBeeston666]

Anyway, as predicted, a woeful AS for traditional contractors, as we've come to expect. I'd be very surprised if many contractors were voting for the Tories next time.

I'm inclined to agree. But, genuine question, who does represent contractors right now? There are Labour murmurings of a 'wealth tax'. Rumours of equalising dividend tax with income tax, which would effectively destroy contracting. I'm not sure where the Lib Dems stand on anything really. I know they want to legalise cannabis which sounds eminently sensible from an economic point of view.

It seems SMEs and PSCs don't have much of a home at the moment. Tories are pro big biz because their C-suite mates lobby them. Labour appeal to their base which has never traditionally been PSCs / SMEs. And Lib Dems are seemingly rudderless.

Let's all vote Green?