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In the run up to the General Election, the Chancellor Sajid Javid mooted that if re-elected the Government would review the proposed changes to the IR35 rules due in April this year.  

This gave hope to some (particularly those in the construction, IT/tech, media and health sectors, where use of personal service companies are commonplace) that the changes would be withdrawn.

On 7 January, HM Treasury has followed up with an announcement that a review of the changes to "address any concerns from businesses and affected individuals about how they will be implemented" is to be carried out.  

It is stated that the review will "focus on the implementation of these reforms" and the tone of the announcement is one of ensuring a smooth implementation rather than resulting in fundamental changes to the new rules themselves.  The review is due to complete by mid-February and may in reality be something of nothing or simply produce a delay to implementation but watch this space.

Full details of the announcement can be found here.

Join us on 28 January and 3 February at our London office for our latest employment law seminars. To learn how to put in place the appropriate measures to prepare yourselves for IR35.

For more information on IR35 please see below: 

Are you ready for IR35?

IR35 off-payroll working rules

IR35 – tax changes afoot to off-payroll working arrangements