Commenting on today’s mini-Budget, Sarah Williams, head of employment at north west law firm Taylors Solicitors,

“Business owners, HR managers and workers across the UK will be relieved at today’s news that the government plans to scrap IR35.

“When it was introduced to the private sector on 6 April 2021, businesses and workers alike were plunged into turmoil, as almost every aspect of working life and, in some instances, home life were excruciatingly examined.

“HR managers and employment lawyers were asked numerous questions about avoiding the IR35 trap, hours were spent reviewing contracts, explaining the control, substitution, and ‘MOO’ test, (mutuality of obligation).

“We had to consider other ‘tests’ too, such as financial risk, provision of equipment and office space, and the old contractual ‘nutshell’ – legal intention. The list of considerations seemed to go on and on and, in relation to many contracts, no one could provide a definitive answer as to whether a contract fell outside IR35.

“IR35 was introduced as a way of raising revenue but many consultants, workers and contractors lost their ability to work. Overnight, businesses – especially those that were struggling to survive during the pandemic – lost their cost-saving ability to rely on flexible additional business support without having to increase the size of the workforce.

“The removal of IR35 will hopefully encourage people who need to work flexibly (including those who have protected characteristics) to return to the work they enjoy the most.

“It’s been a difficult few years with Brexit, Covid and the war in Ukraine, but scrapping IR35 is good news.”

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