#ir35

#ir35

"As many other organisations in both the public and private sectors have discovered, the IR35 rules are complex," he said. "But we accept that the mistakes that came to light should not have been made. Our focus has been to resolve the issue with HMRC and the Welsh Government, taking advice from legal and tax experts to inform our decisions."

"Promising to look again at IR35 reform as part of a wider pledge to support those working for themselves makes nice headlines - but the devil would be in the detail. Given how damaging IR35 reform has been for some, this latest pledge will be music to the ears of many freelancers, contractors and consultants - not to mention businesses. Others, though, will need more convincing."

Eighteen months ago, the Public Accounts Committee (PAC) warned that HMRC's "tough approach" was deterring companies from using contractors. Today, the environment is starting to look very different. The dust has now settled on IR35. The Supreme Court clarified the legal principles a year ago, the offsets fix in April 2024 has removed disproportionate risks, and HMRC's compliance teams are acting reasonably. Firms are passing checks quickly and cleanly, giving them the confidence to hire contractors again.

A Freedom of Information request reveals a dramatic 73% decline in the use of HMRC's CEST tool since 2021-22, raising doubts about its reliability.

The much-maligned IR35 status checker tool, used by HMRC, saw a 73% decline in usage over the past financial year, reflecting growing discontent among contractors.