Chancellor Kwasi Kwarteng delivered a speech this recent week regarding The Growth Plan 2022.
The rising inflation and increasing concern about the cost-of-living crisis in the UK has now been laid out in the Government’s plans for growing the UK economy released on 23rd September 2022.
This plan includes help with energy costs, Trade unions, Innovation and growth, Banker’s Bonus, Investment zones, Taxes, Shares and Investments.
For more information, please visit the link below:
IR35 Tax Rules
Whilst The Growth Plan includes the largest tax cuts implemented in the UK plans have been announced to repair business regulation and dismantle the ‘IR35’ off payroll rules for businesses.
Chancellor Kwasi Kwarteng stated in the house of commons that “reforms to the off- payroll working has added needless complexity and cost for many businesses”. The government plans to repeal the changes which were originally introduced for the public sector organisations in 2017 and for large private sector businesses in 2021. As a result, contractors and consultants who provide their services through a personal service company, will again have the full responsibility for compliance and payment of tax from 6 April 2023. The Chancellor has said the government will keep compliance under review and if rules are not applied correctly further changes may be seen in different forms.
More information can be found https://www.theregister.com/2022/09/23/uk_government_to_repeal_ir35/
This announcement will have an effective result amongst organisations that rely on contractor workforce which had presented a challenge over the past few years.
Organisations subject to the off payroll working rules will need to continue to apply the rules until 5th April 2023.