hmrc confirms no changes to IR35 until at least April 2017

HMRC confirms no changes to IR35 until at least April 2017

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Posted ByAdmin

With no mention of IR35 in the Autumn Statement it was pretty evident the government wanted to take a more strategic approach towards IR35 legislation before announcing any changes. Ringing in some good news yesterday, HMRC made the first official confirmation that IR35 will remain unchanged until at least April 2017, settling the dust that everyone in the contracting industry was getting choked on. 

There were concerns amongst contractors when the rumour mills started recently about the government’s plan to put Personal Service Companies (PSCs) on the payroll, but with no announcement made in the Autumn Statement, the industry was speculating about what the next measure would be and yesterday’s announcement has been welcomed. 

The IR35 forum meeting was attended by many contracting stakeholders including the Association for Independent Professionals and the Self Employed (IPSE). 

An IPSE spokesman said, “We’re pleased that our efforts, alongside those of numerous other groups and hundreds of thousands of contractors, have helped to convince the Government to go back into listening mode.  Clearly the message got across that the approach HMRC was considering wasn’t the most appropriate one.”

Commented Pom Chakravarti, Director of the Contractors Division of Bradleys Accountants Ltd, “We have been on tenterhooks since the Summer Budget and this announcement from the IR35 Forum is very welcome indeed.  This long period of uncertainty has made things very difficult for large numbers of contractors and at least, for a while, we can get back to business as usual.  Whether this is just a ‘stay of execution’ will no doubt emerge in the coming months.”

We do not know if there will be any consultation on IR35 taking place before April 2017 and Bradleys Accountants will keep its contractors updated on any development on this and other matters affecting them. 

In the mean while if you would like an IR35 review of your assignment or have any query please email on or you can contact us on our contractor tax helpline 020 3507 0087.