Chancellor confirms IR35 "soft landing" period

Speaking at an event in Birmingham on Saturday, new Chancellor Rishi Sunak confirmed that HMRC will not be "heavy-handed" during the first year of new IR35 tax rules affecting the private sector.

The Chancellor is reported as stating: “I’ve spent time with HMRC to ensure they are not going to be at all 'heavy-handed' for the first year, to give people time to adjust as well, which I think is an appropriate and fair thing to do.”

Responding, Brian Palmer, tax policy expert at AAT, said:

“While many organisations continued to call for a delay to implementation, AAT recognised that further delays were unlikely, so instead called for a 12 month 'soft landing' period, with no penalties or fines imposed on businesses who can demonstrate taking reasonable steps to comply. AAT is naturally pleased that the Chancellor has agreed with our proposal and believes this should provide some much needed reassurance for both employers and contractors alike.”