IR35 Reforms Summary for Tech Contractors
For tech contractors, the upcoming changes announced in the inaugural budget was both surprising and positive news. The Conservative governments mini budget announced by Kwasi Kwarteng and Prime Ministor Liz Truss, highlights what this new government will be focused on. The mini budgets major announcements covered taxation, business support, and most importantly for contractors, IR35 reforms changes. Below is a recap of everything we know about the IR35 reforms so far.
IR35 reforms repeal announcement
This announcement has been welcomed by many self-employed tech contractors, the chancellor announced that IR35 reforms to off-payroll working rules introduced in the public and private sectors 2017 and 2021, will be repealed.
What are the IR35 changes announced in September 2022?
The Chancellor announced repealed IR35 changes from 2017 and 2021. This means in April 2023, the determination of IR35 status and responsibility for paying the correct amount of tax and NI contributions will no longer sit with the end-client. And will revert back to the tech contractor as was the case in pre-April 2017.
Why has the government repealed the IR35 reforms?
The repeal is aligning with UK governments “Growth Plan 2022”. The UKGOV Growth Plan has shared the following statement:
“The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, 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”.
When will the IR35 changes come into effect?
The IR35 changes announced in September will come into effect in April 2023. The current IR35 rules will remain in place until April 5th 2023, therefore any work done by contractors up to that date, despite being invoiced and paid after April 6th 2023, will be subject to the client determining the IR35 status.
If you’re looking for new software engineer contract jobs, software developer contract jobs or electronics contract jobs visit our tech jobs page, or contact our technical recruitment consultants to discuss tech contract jobs today.
About Hexwired Technology Recruitment
Hexwired recruitment provide a tailored and cost-effective tech recruitment solution for our clients, helping employers to hire skilled professionals in software engineering that are suited to the business needs quickly. Our technical consultants’ knowledge and understanding of the sector, alongside their experience in the tech industry is one of the reasons we excel at finding you the right candidates in software.
We provide both contract and permanent solutions to the technology sector, covering areas such as Embedded Software, Electronics (FPGA, Digital Design, RF, IC Design), Software Test, C++ software engineer, Python, Golang, Machine Learning and Data Science, Technical Sales and Project management, and more. Need help hiring permanent/contract talent or looking for a new job? Contact us today.
