HMRC Delays IR35 Reforms Because Of Coronavirus

18th March 2020

HMRC Delays IR35 Reforms Because Of Coronavirus

The Government has announced a last-minute postponement to the implementation of the IR35 changes in relation to Off-Payroll Tax to the private sector. Following the recent Covid-19 outbreak, they have announced that the legislation will now be reintroduced in April 2021.

There has been significant pressure from contractors and campaigners and the change is welcome news in the light of the economic uncertainties arising from the virus.

“This is a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals,” announced Chief Secretary to the Treasury, Steve Barclay MP to the House of Commons.

“This is a deferral and 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 amount of tax as those employed directly.”

The announcement presents some opportunity for greater consideration of the changes, particularly in light of the employment and economic uncertainties which are likely to follow over the next year.

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