Contractors’ Friend Kwasi Kwarteng Sacked – What Now for Off Payroll Abolition?

IR35, Contractors and the blanket banning of PSCs
IR35, Contractors and the blanket banning of PSCs

What Happens Now About the Scrapping of the 2017 / 2021 Off Payroll Rules?

According to Sky News, the Chancellor, Kwasi Kwarteng, has been sacked.

It looks as if the Chancellor has been thrown to the dogs to take the blame for the mini Budget which so spooked the markets.

It looks like Liz Truss is going to let him take the blame for the fiasco that was the mini budget.

Prime Mister Truss is famous for her U Turns but this is a beauty.

How Will he Chancellor’s Sacking Affect UK IT Contractors?

However, for UK Contractors this could be a disaster.

Conservative Ministers and BackBenchers have been saying that many of the proposals in the mini budget were not in the Conservative manifesto and that the Government should stick to delivering what was in the manifesto.

Scrapping the Off Payroll rules was Chancellor Kwarteng’s baby.

It is not in the manifesto.

Indeed it was never mentioned by Liz Truss at all in her campaigning for the leadership.

It seems fairly certain that the Off Payroll rules will not now be scrapped.

This is a huge blow for UK IT Contractors and freelancers.

It came completely out of he blue. No one had been expecting it.

Will the Abolition of the Off Payroll IR35 Rules be Kept by a new Chancellor?

With Kwarteng gone it has no champion, no one to fight for it.

Who is going to fight now for what is basically a tax cut for people who earn around £100,000 a year.

They’ve already scrapped the 45% tax rate for people who earn over £150,000 a year.

One would expect this budget to be scrapped completely and for the new Chancellor to create his or her won mini budget.

And it is highly unlikely that the new Chancellor will not fight for the Off Payroll rules to be scrapped.

The Mini Budget was such great news for contractors – and so unexpected.

However, it looks as if this cup is going to be dashed from their lips.

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