An update from Westminster

Great news for contractors, if you still have your contract.  After pressure from Peers and Covid-19, the IR35 changes to the private sector have been delayed by a year.

Steve Barclay, the Chief Secretary to the Treasury said, “I can also announce this evening, madam deputy speaker, that the government is postponing the reforms to the off-payroll working rules, IR35, from April 2020 to the 6th April 2021.”

“Government will therefore not move the original resolution tonight, but will shortly table an additional resolution confirming that we will reintroduce the off-payroll working rule provisions by amending the bill, with a commencement date of 6th April 2021.”

“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 people working like employees but through their own limited company pay broadly the same tax as those employed directly.”

This gives us hope that the changes may be shelved completely, or the employment status checker tool will be updated and will be fit for purpose if the legislation is reintroduced with an April 2021 start date.

If you need further information on IR35 then please check out our blogs or contact us at Clearways Accountants.