IR35 reforms postponed at the last-minute due to coronavirus pandemic
Announced among a £330bn financial package for the UK economy in response to the ongoing spread of COVID-19, Steve Barclay, Chief Secretary to the Treasury, spoke in the House of Commons on Tuesday evening (17 March) to confirm that reforms to the heavily anticipated off-payroll working rules, IR35, would be postponed for a year.
The legislation, which was due to be extended to the private and third sectors from 6 April 2020, would have placed responsibility on medium and large businesses to determine the employment status of any worker engaged though a personal service company (PSC), for tax purposes. The new rules are now expected to take effect from 6 April 2021.
Following the announcement, Lee Muter, Employment Taxes partner at UNW said: “Considering the many other issues employers will have to cope with in the next few months, this is a welcome move by the Government. Although a lot of employers have already planned for the changes, the delay of IR35 will enable them to concentrate efforts on looking after their workforce and keeping their businesses going.
“Further information has not yet been announced, but we expect formal confirmation as part of the Finance Bill, which will be published later this week or next.”
We will keep you informed of further developments, but if you have any questions or have any concerns about how this announcement might affect you, please contact Lee Muter, Employment Taxes Partner, on 0191 243 6000 or at email@example.com
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