IR35 Rollercoaster

We last mentioned this topic back in September when we welcomed the news that Liz Truss’s Mini Budget revealed that they would be scrapping the IR35 laws.

At the time, the decision to repeal IR35 reform was fair, logical and made sense from an economical perspective.  However, since then, IR35 has been on a bit of a rollercoaster ride.

Hunt reinstated IR35 Reform after it was temporarily cancelled by previous chancellor Kwasi Kwarteng and then interestingly, it didn’t even feature in the Autumn Budget, suggesting it is here to stay… for now.  
 

IR35 comes at a cost to the flexibility of the UK's workforce; and as we experience more layoffs in the media industry, it is disappointing IR35 has been retained. It comes at a time when the economy needs flexible talent to be available to support the productivity of the UK economy and limit the impact of recession.   In addition, companies will need flexibility more than ever before as they manage increased salaries as we head into 2023.  

So, what does this mean?

Unless you’re engaged by a company that qualifies as ‘small’, your end-client will remain responsible for assessing IR35 status via four areas, simplified as:

• mutuality of obligation
• control over work
• right to substitution and
• financial risk and employment.

(Click here to read our full article)

Liberty Hive recognises the need for greater flexibility so we are here to support you. For those of you who are contracting, navigating your way around IR35 can be daunting which is why we have an easy-to-use flow chart to determine your status.

There are also lots of great guides to IR35 and at Liberty Hive we have partners that can help you so get in touch if you have any questions.