IR35 to be reviewed

Chancellor promises review of tax rule Chancellor Sajid Javid has pledged to review tax rule changes coming into force next April under the IR35 regime, with Mr Javid saying he wants to ensure the reforms are appropriate. The rule change is shifting the responsibility for assessing the tax status of contractors from the individual to the employer. The reform is designed to prevent disguised full-time employees gaming the system to pay lower taxes but has raised concern among firms worried they will fall foul of HMRC rules, prompting some to cut ties with contractors. Seb Maley of Qdos, a tax firm for freelancers, welcomed the Chancellor's promise of the reform coming under scrutiny, but said any review “must be genuine and not lip service simply to win the votes of independent workers, who could be crucial in the outcome of the election.” The review will come under a wider investigation into how new policies could help freelancers.