The government has announced that from April 2023 the public and private sector reforms to IR35 off-payroll working will be scrapped.
Before the IR35 reforms were brought in in 2017 and 2021, contractors were responsible for determining their employment status and paying the correct amount of tax and national insurance.
In 2017, public sector bodies became responsible for determining the employment status of contractors and taxing them correctly. In 2021, medium and large private sector businesses became responsible for determining the employment status of contractors and taxing them correctly.
From April 2023, contractors providing personal services through a company will once again be responsible for determining their employment status and paying the correct amount of tax and national insurance. This will apply regardless of whether they provide their services to either the private or public sectors.
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