Looks like the Coronavirus has taken it’s latest victim – the much maligned off payroll working rules due to come into effect April 2020.
Chief treasury secretary Steve Barclay announced on Wednesday 18 March that the IR35 tax reforms would be pushed back by one year, less than a week after the controversial measures were confirmed in the Budget.
Speaking at the despatch box at the Budget debate in the Commons, Barclay confirmed that the changes, which aims to clamp down on contractors working via personal service companies who supposedly are, in practice, providing the same service as employees, would not go ahead in April as previously expected.
Instead, the measures will come into effect on 6 April next year.
Barclay said that move is part of a broad package of measures the Treasury has announced to protect the economy from the coronavirus outbreak.
He confirmed that the decision was “a deferral, not a cancellation, and the government remains committed to reintroducing this policy”.
The Budget announcement had been met with disdain by businesses, who had argued against the reforms.
Businesses affected by this are advised to use this reprieve to assess how they can reform their working practices and manage the future exposure to IR35.
Should you need advice regarding this please call on 0114 275 6292 or email email@example.com.