Changes to IR35 deferred
It was rumoured that the Chancellor would announce measures forcing contractors onto the client’s payroll after some period (we heard as short as a month to a year) which thankfully proved not to be the case. There was no mention of IR35 at all by George Osborne in his speech nor in the subsequently published documentation. Shortly after the Chancellor finished his statement, senior officials confirmed to IPSE that the Government was still considering its options on IR35. However, the Government stated that they will take more time to find a solution which protects the Exchequer and improves fairness in the system without creating disproportionate burdens on business, or widening the scope of the rules.

Travel & Subsistence
The Government had proposed to introduce a test which would have resulted in many contractors not being allowed the relief to which they are currently entitled under the “Temproray Workplace”, or “24 Month” Rule.  The Government has dropped plans for this test. Instead the tax relief will only be restricted where the contractor is caught by IR35. This is a step in the right direction but contractors must not be complacent. There could still be unfair, damaging restrictions made to the IR35 rules.


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