Coronavirus: Government announces IR35 delay

The Government has announced that the IR35 tax reforms which were due to be implemented in April 2020 have been delayed for a year due to 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.