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Government postpone IR35 changes until April 2021

The Government has sensationally given a 12-month reprieve to contractors and businesses being forced to make difficult decisions around their IR35 status in the private sector.  It was announced on Tuesday 17th March that they would be delaying the changes to the Off Payroll rules due to be imposed in April until April 2021.

Steve Barclay, Chief Secretary to the Treasury, said:

“This is a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals. This is a deferral, not a cancellation, and the government remains committed to reintroducing this policy to ensure that people who are working like employees, but through their own limited company, pay broadly the same tax as those employed directly.”

This is great news for contractors and the businesses who faced being forced to decide on many of their contractors’ tax status and will hopefully provide the opportunity for the measures to be scrutinised in more detail and maybe even scrapped.

At One Click Accountant, we are able to provide advice and guidance to agencies, end-hirers and contractors on how to navigate their way around the legislation and now would be a great time to get in touch.