The off-payroll rules are ripe for repeal, replacement, or reform when the chancellor next gets to her feet.
The introduction of the Off-Payroll Working (OPW) rules, notably in the private sector in 2021, has resulted in continuous and consistent damage to the UK’s economic growth, writes Teodora Dimitrova, owner, director and practice manager at Chart Accountancy.
With Autumn Budget 2025 soon to come, and both Finance Bill 2026 and the Employment Rights Bill practically here, the introduction of more measures like IR35 seems counterintuitive.
Yet, thanks to a House of Commons answer on IR35 that Rupert Lowe MP received from Treasury boss Rachel Reeves MP, we know that, sadly, none of the incoming measures in these three government-set pieces will have the effect of repealing the OPW rules.
In short, the OPW rules aren’t going anywhere. And that’s a firm ‘No’ to a deletion from the statute book that Mr Lowe, the founder of Restore Britain, is entirely correct to call for.
What’s the double-disappointment right now for contractors and the UK?
The state of the independent contractor market is disappointing.
It is particularly concerning that the chancellor has described the UK economy’s recent performance as “disappointing” (see BBC News of July 11th 2025), while at the same time, the private sector faces increasing barriers to hiring.
Those barriers impede the engagement of independent consultants, with the IR35 regulations chief among them.
And even the direct employment of those independent individuals is further impeded, thanks to increased employer National Insurance rates, which have been in force since April 6th 2024.
How much has HMRC raised from IR35, apparently?
When IR35 was introduced, the government forecasted an additional £4.2 billion in tax revenue.
It’s an IR35 yield figure that HMRC is sticking to today, notably in its “Update to the impacts of the 2021 off-payroll working rules” research.
However, in my view, this big projection failed to account for the lost tax revenues and missed opportunities for growth, particularly when considering the global competitiveness of our economy.
To read the full Moore News article, which is based on the exclusive comments of accountancy expert Teodora Dimitrova (who Moore News interviewed), please visit Kingsbridge, where this Viewpoint piece was first published.