Page 7 - Growth Plan Newsletter

IR35 – Off-payroll working

The off-payroll working rules reforms introduced in 2017 and 2021 will be repealed from 6 April 2023, effectively
taking the IR35 regime back to its original structure. Thus, from 6 April 2023, individuals providing their services
through an intermediary, e.g. a personal service company, will once again be responsible for determining their own
employment status and paying the appropriate amount of tax and NICs. While this is good news for larger employers
(smaller employers were exempt), the change will throw the onus back on the worker, with all the issues that
originally created.

Investment Zones

The government plans to encourage the establishment of investment zones throughout the UK. These zones would
benefit from relaxed planning and environmental rules and time-limited reductions in tax. For zones in England, the
possible 10-year tax-incentives being considered are:

• 100% business rates relief on newly occupied business premises and certain existing businesses where they
expand into a zone.

• 100% first year capital allowances for plant and machinery.

• Accelerated relief, allowing businesses to set 20% of the cost of qualifying non-residential investment per
year against profits.

• 0% employer NICs on salaries of any new employee working in the tax site for at least 60% of their time, on
annual earnings up to £50,270 per year, with employer NICs being charged at the usual rate above this level.

• Full SDLT relief for land and buildings bought for use or development for commercial purposes, and for
purchases of land or buildings for new residential development.

6