HMRC and IR35

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Rishi Sunak bows to pressure on IR35 tax changes Rishi Sunak has said that tax officials will not be “heavy handed” in enforcing the changes to the off-payroll working rules, known as IR35, for the first year. He did however defend the government’s decision to implement the changes, as some employees were being taxed as if they were self-employed. From April 2020, every medium and large private sector business in the UK will become responsible for setting the tax status of any contract worker they use. But many freelancers complain the rule change has triggered employers to drop them and the uncertainty has left them with mental health issues; moreover, 75% of freelance contractors say they have left or intend to leave their clients by April, leaving companies facing a £2.2bn productivity black hole.

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