A month is a long time in employment law; well, it is at the moment! No sooner had we digested the then chancellor’s announcement on 23 September that IR35 reforms would be reversed, his successor Jeremy Hunt announced a U-turn on this decision on 17 October. No reversal, the IR35 reforms still stand, which is more than can be said for Liz Truss and Kwasi Kwarteng! 

So our previous blog, published on 28 September 2022 is superseded by events. The IR35 reforms which were introduced into the private sector in April 2021 will remain and responsibility for assessing the tax treatment of contractors will sit with the organisations engaging them (except for small private sector organisations). In short, our blog from April 2021 remains the legal position.

This is likely to be unwelcome news to thousands of private sector organisations up and down the country who will remain administratively burdened by IR35 reforms and concerned about the tax risk it brings them. On the bright side, if we can call it that, the money and time invested in ensuring IR35 compliance will now not be wasted although this may be cold comfort for many!

And in other news... unfortunately, the controversial Retained EU Law (Revocation and Reform) Bill 2022-2023, again announced during Liz Truss’ brief premiership, is full steam ahead with no U-turns on the horizon. The details of the Bill which seeks to 'sunset' all EU retained legislation can be found in our blog, published on 26 September. It has now had its second reading in the House of Commons approved by a relatively narrow vote of 280 to 225, which, given the Conservative Party’s large majority, demonstrates the contentious nature of the Bill. It now proceeds to the committee stage. We will continue to update you on the progress of this Bill, and what it means for the future of UK employment law, as and when developments arise. Hopes that it will be scrapped, are at this stage rather optimistic.