Breaking News: IR35 changes delayed until 2021

The Government announced last night that the private sector reforms to IR35 (also known as Off Payroll Working) will be deferred by one year to April 2021. Despite having reaffirmed its commitment to pushing through these new rules from 6th April in last week’s Budget, the sudden escalation of the Covid-19 situation has led to an abrupt U-turn. The Government has far more pressing priorities and a need to give the economy as much support as possible at this time, so this not at all surprising.

 

Stephen Barclay, Chief Secretary to the Treasury, confirmed the suspension of the changes is “a deferral not a cancellation and the Government remains committed to reintroducing this policy.” This means that current IR35 rules continue for one more year, with the Personal Service Company worker remaining responsible for determining their own employment status and deciding whether to apply IR35 and make tax/NIC deductions.

 

If you have any queries about IR35 or employment status please contact Richard Whitelock our Head of Private Clients at rwhitelock@garbutt-elliott.co.uk.