Off Payroll Legislation to Remain
Chancellor Hunt has just announced that all tax measures that are not already going through the House, will be scrapped.
He specifically said that the measure brought in by Truss and Karteng that scrapped the Off Payroll IR35 tax legislation will not now happen.
That is a massive blow to UK IT contractors.
It’s even worse because freelancers were not expecting Truss and Kwarteng to scrap the Off Payroll legislation.
They were delighted.
Now it has been snatched away from them again.
What Happens Now With IR35 and the Off Payroll Legislation?
Is this just temporary until the market calms down?
Will the new Chancellor re-introduce it next year or the year after?
That’s highly unlikely.
Chancellor Hunt told one of his constituents, who is a contractor, that the self employed should pay the same tax as employees.
Should the Self Employed be Treated Like Big Businesses or as Employees?
Liz Truss has said that the self employed should be treated the way big businesses are treated for tax purposes.
Prime Minister Truss says the Government should treat contractors like big businesses whereas Chancellor Hunt says treat them like employees.
That’s only for tax purposes.
With this announcement we can see who is really in charge.
Truss did not want this but Chancellor Hunt did.
How Does the Future Look for UK Contractors?
The future looks bleak for freelancers in the UK.
No other Chancellor or Prime Minister since the IR35 legislation came in during 2000 have backed freelancers over IR35 whether it was Conservative or Labour Chancellors and Prime Ministers.
Kwarteng and Truss were the only ones.
Now Kwarteng has gone and the pro-IR35 Chancellor Hunt is in charge of the Treasury.
Liz Truss is now like the Princes in the Tower. She may not escape their fate.
The Anti-Contractor side of the Conservative party are now in charge of financial policy.
God help us!
The Queen is Dead!
Long Live the King!
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