20 Mar 2020
In light of the growing business uncertainty surrounding the Coronavirus pandemic, HMRC have decided to delay the changes to the IR35 off payroll working rules in the private sector for 12 months.
The new rules will now not be implemented until April 2021.
The new rules, which were due to take effect from 6 April 2020, would have required private sector organisations to determine if contractors should be treated as employees for tax purposes and is designed to ensure that individuals working as employees but through their own limited company, would pay broadly the same tax as those employed directly.
While this news will come as welcome relief to those effected, it remains to be seen whether the delay has come too late with many organisations having already implemented their IR35 strategy. It will however buy private sector firms vital time to prepare for the reform which can only be good news for contractors.
If you require more information or help with planning ahead for your business, please contact your relationship director today and we will help you.