Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will male an assessment of the potential merits of taking steps to abolish the changes to the IR35 off-payroll working rules introduced in April 2021.

Off-payroll working reform was introduced for the public sector in 2017 and to medium and large sized businesses in the private and voluntary sectors in 2021. The reforms did not change the underlying rules but shifted responsibility for determining the employment status for tax purposes of someone working through their own intermediary from the intermediary to the client organisation engaging them.

The reforms tackle non-compliance with the existing off-payroll working rules and have been successful in doing so: more people who are working like employees are paying taxes like employees, improving fairness in the tax system.

Keeping the 2017 and 2021 reforms in place protects around £2 billion a year of Government revenue, and the Government has no plans to repeal them.

The Government continues to monitor the impacts of the reforms and published HMRC-commissioned, and its own analysis in December 2022. The Government has already committed to updating the internal analysis with the latest data in due course. The Government has already committed to updating the internal analysis with the latest data in due course.