HUGE boost for self employed as complex tax rules axed | The Sun

SELF-employed workers have been given a huge boost under a major tax shake-up.

The controversial IR35 tax rules will be axed from April next year, Chancellor Kwasi Kwarteng's emergency mini budget.

The Chancellor announced a raft of measures in today's package of help including:

  • A beer price rise has been cancelled
  • National Insurance rise scrapped saving up to £330 a year
  • Income tax cut from next April saving average £124 a year
  • Stamp duty cut for home movers and first-time buyers

The IR35 tax scheme hits self-employed workers who have set themselves up as private companies.

This includes self-employed workers like delivery drivers, building contractors and many others who mainly work for other businesses who are not on the payroll.

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Under the current IR35 system, the business that you work for, rather than yourself, is responsible for deciding your tax status.

It can often mean self-employed workers can pay unnecessary costs.

The scheme has been been blamed for hitting contractors, causing employers to avoid using freelancers for fear of large tax bills.

The Chancellor said: "We can also simplify the IR35 rules – and we will.

" Reforms to off-payroll working have added unnecessary complexity and cost for many businesses.

"We will repeal the 2017 and 2021 reforms. Of course, we will continue to keep compliance closely under review."

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IR35 expert Qdos chief executive Seb Maley said: "Repealing IR35 reform is a huge victory for contractors.

"The changes have created havoc for hundreds of thousands of independent workers, along with the businesses that engage them."

It is among a raft of measures announced in the mini-Budget today.

Stamp duty has been slashed in a bid to help first-time buyers get on the ladder.

Also confirmed was that the 1.25% point increase to National Insurance will be scrapped from November 6.

The hike was first introduced in April and pushed up rates to 13.25% and 3.25%.

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The move will save workers an average of £135 a year in 2022, rising to £330 in 2023-24.

We explain the exact amount your pay will rise to in November here.

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