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UK – Chancellor says IR35 reforms will be reviewed if Conservatives win election

02 December 2019

Chanceller of the Exchequer Sajid Javid has vowed to review IR35 reforms in early 2020 as part of the Conservative Manifesto’s pledge to review how the UK government can support self-employed workers.

Speaking on BBC Radio 4 programme Money Box Javid said, ““One thing in particular that I want to look at again are the proposed changes to IR35. I want to make sure the proposed changes are right to take forward.”

“We’ve already said in our manifesto, and we’ve made it very clear, that we’re on the side of self-employed people,” Javid said. “We will be having a review and I think it makes sense to include IR35 in that review.”

The off-payroll working IR35 rules were introduced in April 2017 to public sector providers to ensure that contractors who work through their own business, but are in fact employed by a third party, still pay the correct amount of taxes. The government is set to extend the off payroll working rules to the private sector from April 2020.

When asked about the Loan Charge, Javid said, “That is something that is already being looked at. We promised a review into that and that review, that independent review, is ongoing and I expect it to review this year.”

Seb Maley, CEO of IR35 specialist Qdos, commented, “While a review of IR35 changes is certainly a sign of progress, reform is still set to be enforced in April 2020. As a result, contractors, recruitment agencies and private sector firms must work off the basis that it will be introduced until told otherwise.”

“Given the Liberal Democrats have been praised by contractors for promising a review already, you are left to wonder if this is why the Chancellor has now decided to discuss the legislation. IR35 was, as you might have noticed, absent from the Conservative Party manifesto,” Maley said. “Nonetheless, a potential review into IR35 reform shows the government is listening at long last. However, any review must be genuine and not lip service simply to win the votes of independent workers, who could be crucial in the outcome of the general election.”