Javid pledges Tory review of IR35 changes

Chancellor of the Exchequer Sajid Javid has committed to a review of IR35 rules.

Speaking on BBC Radio 4 programme Money Box last week, Javid said: “One thing in particular that I want to look at again are the proposed changes to IR35.” 

He added: “I want to make sure the proposed changes are right to take forward,” before stating: “I think it makes sense to include the proposed IR35 changes in that review.”

While there was no mention of such a commitment in the Conservative Party election manifesto, both the Liberal Democrats and the SNP pledged to review IR35 in their election manifestos.

Commenting on the development, Seb Maley, chief executive at contractor insurance provider Qdos, said: “With the general election nearly upon us, that the chancellor has pledged to review IR35 reform will be welcomed by contractors, who have understandably lost trust in this government.

“While a review of IR35 changes is certainly a sign of progress, reform is still set to be enforced in April 2020. As a result, contractors, recruitment agencies and private sector firms must work off the basis that it will be introduced until told otherwise.

“Given the Liberal Democrats have been praised by contractors for promising a review already, you are left to wonder if this is why the chancellor has now decided to discuss the legislation. IR35 was, as you might have noticed, absent from the Conservative Party manifesto. 

“Nonetheless, a potential review into IR35 reform shows the government is listening at long last. However, any review must be genuine and not lip service simply to win the votes of independent workers, who could be crucial in the outcome of the general election.”