IR35 off-payroll reforms delayed
By PaperRocket Accounting, Mar 18 2020 12:56PM
Yesterday evening in the House of Commons, Steve Barclay, Chief Secretary to the Treasury, announced that there is to be a shock delay to the controversial off-payroll IR35 reforms within the private sector. The reforms will now be delayed by at least 12 months and the roll out will not now take place until April 2021. This followed heavy pressure from lobbying bodies and the House of Lords and in light of the Covid-19 emergency the government took the bold and much welcomed decision to pause the implementation of the upcoming legislation which was due to come into force in just a few short weeks.
What does this mean for contractors and freelancers?
The delay of the IR35 reforms means that there will be no changes to the way the IR35 rules operate within the private sector for at least the next 12 months. As has been the case to date, contractors and freelancers will therefore remain responsible for determining their own IR35 status and they can continue to operate contracts through their limited companies as usual.
If you have recently been instructed to work inside of IR35, through an umbrella company, or to take on a PAYE role, you may want to check the situation with your client.
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