Today saw the release of the Draft Finance Bill 2016. After an Autumn Statement surprisingly devoid of any mention of changes to IR35 rules, despite significant pre-Statement speculation to the contrary, most members of the contracting community expected to see changes announced in today’s draft Bill. However, IR35 was once again conspicuous by its absence.
Any proposals for change that may have been happening behind government walls are staying there for the time being. The Draft Finance Bill did include the changes to tax relief on Travel and Subsistence expenses where a contract is inside IR35 that were announced in the Autumn Statement. However, the lack of any IR35 reform suggests the government took heed of the advice of the stakeholders they consulted, as well as the overwhelmingly negative reaction to the proposed changes from the contracting community as a whole.
In a letter received by Nick Holmes, CEO of Umbrella.co.uk, and timed to coincide with the release of the Draft Finance Bill, the Chancellor stated: “We will be considering this issue carefully before taking any further decisions. Should any further changes be introduced they would be subject to detailed consultation before publishing any draft legislation.”
Whether this means that the Government are simply biding their time, or whether they have abandoned their plans for IR35 reform altogether, remains to be seen. It seems now that all eyes have moved to the next Budget statement on 16th March 2016.