IR35 delayed for a year because of coronavirus

The Government has announced that the IR35 tax reforms which were due to be implemented on 6 April 2020 have been delayed for a year because of the ongoing coronavirus outbreak.

The changes to off-payroll working rules, which would see all medium and large-sized private sector employers become responsible for deciding a contractor’s employment status, will now come into effect on 6 April 2021.

The decision was announced by Chief Treasury Secretary, Steve Barclay and comes alongside a broad package of measures from the Treasury in a bid to protect the economy during the outbreak.

It follows significant opposition from business leaders to the announcement in the Budget that the reforms were still set to go ahead next month.

The Government has reiterated that the decision was a deferral, not a cancellation and they remain committed to reintroducing this policy on the new date.

Further information is expected to be published in the coming days regarding the IR35 reform delay, as well as the other measures which are being introduced to support businesses.

If you require help or advice regarding the IR35 reform delay then contact a member of our expert team today.

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Donna Martin

Donna Martin

Partner at Mackrell.Solicitors
Donna Martin is a Partner in the Employment team at Mackrell.Solicitors’ London office. She advises both employers and employees on a full range of contentious and non-contentious issues. As an employment law expert, Donna has significant experience in drafting employment contracts and handbooks, advising on grievance and disciplinary procedures and preparatory work prior to tribunals, including advising on the advantages and disadvantages of settling cases.