After the announcement of the April 2023 repeal of off-payroll IR35 Reforms, Crawford Temple, CEO of Professional Passport, said:
“Pressing ahead with the off-payroll legislation in 2017 and 2021 was foolhardy as the government was building new legislation on fundamentally flawed original legislation as most experts highlighted at the time. Moreover, the legislation opened the floodgates to disguised remuneration schemes, once again highlighted by experts, that have had a punitive impact on contractors’ pockets whilst the perpetrators of the schemes have financially flourished. Implementation of these new rules has cost companies millions of pounds so it is disappointing that the warnings were not heeded before pressing ahead. Implementing off-payroll has created a car crash and much damage has already been done. It has taken up until now for the government to acknowledge this. However, the government urgently needs to press HMRC to provide detailed guidance, on the back of today’s announcement, relating to the application of the MSC Legislation. I would go further and suggest a review of both IR35 and MSC Legislation needs to be carried out urgently so that contractors are not inadvertently operating under schemes that would apply full PAYE to their income from April. IR35 is flawed and the government should start with a clean sheet of paper and design a strategy for the modern workplace.”
If you would like further guidance around legislation and compliance, you can find out more information through the Professional Passport website.