IR35 update - private sector implementation delayed
Chief Secretary to the Treasury Steve Barclay is reported to have announced to Parliament on Tuesday evening that “The government is postponing the reforms to the off-payroll working rules, IR35, from 6 April 2020 to 6 April 2021.”
He said, “this is in response to the ongoing spread of COVID-19 to help businesses and individuals.” It will, he said, still go ahead as planned the following year. “This is a deferral, not a cancellation, and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company, pay broadly the same tax as those employed directly.”
The delay must be welcome, but will come too late for many who have already been forced onto PAYE contracts.
NB I have searched for an “official” source to confirm this quote but can’t yet find one. The story is being widely reported in the contractor press, so I don’t doubt it. Unprecedented times, I suppose.