On April 6, 2025, the UK Government implemented new size thresholds for businesses, raising definitions for micro, small, and medium businesses. This change directly affects the contracting sector, particularly regarding the Off-Payroll Working (OPW) rules under IR35. Now, more firms will qualify as small, exempting them from the OPW rules and thus shifting tax responsibilities. Approximately 127,000 businesses will see changes in their classifications, which is likely positive news for contractors by easing tax obligations and encouraging better compliance in the contracting landscape.
The updated thresholds will classify some medium-sized firms as small, subsequently exempting them from off-payroll working rules, which will impact around 127,000 businesses.
This change signals relief for contractors since many formerly termed medium firms can now shift to small business status, alleviating tax burdens.
Collection
[
|
...
]