Chancellor Kwasi Kwarteng has announced the end of IR35 reforms from next April in this morning's highly anticipated 'mini-Budget'.
It means workers providing their services via an intermediary, such as a personal service company, will be responsible for determining their employment status and paying the correct tax.
Mr Kwarteng said the aim was to 'simplify' off-payroll working rules by repealing the 2017 and 2021 IR35 reforms.
He told the Commons: ‘In practice, reforms to off payroll working have added unnecessary complexity and cost for many businesses.'
The Government's Growth Plan, published today, says the measure will ‘free up time and money for businesses that engage contractors'.
Public Policy Director for the Association of Professional Staffing Companies (APSCo), Tania Bowers, said: 'The planned repeal in April 2023 of the off-payroll legislation is a welcome move. APSCo has long called for a review of the measures which have dramatically reduced the flexibility of the skilled independent labour market since they were introduced in 2017 and 2021.'