Good news for all those recruitment businesses and employers who directly engage with temporary workers in the private sector. In an approach similar to its response to Covid-19, the government has entered the delay phase and deferred the implementation of the well-publicised IR35 legislation.
Yesterday (17th March 2020), Chief Secretary to the Treasury Steve Barclay, announced a one-year postponement of changes to the IR35 off-payroll working rules, from 6 April 2020 until 6 April 2021.
Speaking in Parliament he said the delay is in “response to the ongoing spread of COVID-19 to help businesses and individuals,” but added that the reforms will still go ahead next 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,”.
This delay will offer some reprieve to businesses and contractors as they face the uncertainty that has been brought about due to COVID-19.
If you are concerned as to how this delay may impact you or have any questions around IR35 off-payroll reform, please contact Marie Pegram. Alternatively, check out our series of blogs on IR35 or you can download our IR35 Off-Payroll Reform Guide for Recruitment Businesses.