The Election Results and an IR35 review: what does it all mean?

As the IR35 changes due to be implemented in April 2020 draw nearer, businesses are busy preparing for the upcoming legislation changes. However, ever since Sajid Javid’s General Election proposal for an IR35 review, questions have been looming over the proposed changes.

Following the Conservative General Election win, businesses are now questioning when chancellor Sajid Javid’s proposed IR35 review will take place and how this will impact IR35 changes.

What will an IR35 review mean?

During the election campaigns, Sajid Javid claimed that he would review IR35 changes to ‘make sure that the proposed changes are right to take forward’. Ever since, there has been speculation over what an IR35 review will actually mean? Will there be a delay to IR35 changes? Will the policy changes be abandoned all together?

Realistically, given that IR35 changes are predicted to make HMRC £1.3 billion revenue by 2024, it is incredibly unlikely that IR35 legislation changes will be scrapped all together.

No one can for certain rule out a delay to IR35 changes, however, it would be unwise for companies to put faith in such a delay and press pause on their IR35 preparation. A delay, if there even is one, isn’t likely to be an extensive one and businesses only risk prolonging their own, and indeed their contractors, uncertainty and instability over IR35 changes.

Instead, businesses are better preparing for the changes with a bespoke IR35 service that offers full IR35 compliance and protection and mitigates risk to the entire supply chain. Therefore, no matter what the government’s IR35 review entails, they will be prepared to transition smoothly.

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Optimus Shield is the result of heavily invested research and development to tackle the issues now facing the private sector due to changes to the IR35 legislation being rolled out in April 2021.