Government delays IR35

IR35 changes delayed until April 6

Last night Chief treasury secretary Steve Barclay announced that the changes to "IR35" the off-payroll working rules would be delayed by one year coming into effect 6 April 2021.

In an unexpected announcement, Steve Barclays said "The government is postponing the reforms to the off-payroll working rules, IR35, from April 2020 to 6 April 2021. This is a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals."

​Steve Barclay's announcement came after the house of lords called for more support to help businesses and contractors deal with the economic impacts of the coronavirus. This delay means that intended IR35 changes won't come into effect until 6 April 2021.

IR35 is delayed but it will still go ahead next year

While making the announcement Steve Barclay also added, "This is not a cancellation, and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company pay broadly the same tax as those employed directly."

​Many businesses and contractors already made the changes and preparations needed to follow IR35 for April this year. With IR35 delayed, contractors, agencies and companies must use this time to organise and prepare their processes, so they're ready for IR35 next April.

What does this delay mean for contractors or recruitment agencies?

With IR35 delayed until next year, the current IR35 rules will stay in place. IR35, although delayed, will go ahead next year so contractors and recruitment agencies need to organise their processes.

​If you have any questions about organising or preparing for IR35, our expert team can answer your queries and offer you solutions.

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