One of the Government’s most controversial and feared tax changes has been pushed back by 12 months as part of the Coronavirus support measures.
For those that have been living and working with the provisions of IR35 for the past few years the rise of the Coronavirus has at least bought some much welcomed relief. Big changes were afoot that would have significant implications on many so called ‘off-payroll’ workers.
But the Government has rolled back on the proposals as it seeks to provide maximum relief to the UK Economy and the Off-Payroll reforms have been deferred for a year until April 2021.
Chief Secretary to the Treasury & MP Steve Barclay made the announcement in the House of Commons on the night of 17 March 2020 stating that this was not a cancellation, but a response to the Coronavirus outbreak:
“The Government is postponing the reforms to the off-payroll working rules (IR35) from April 2020 to 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 that people working like employees but through their own limited companies pay broadly the same tax as those employed directly”
Tahmina Ahmed, Client Manager at ATN Partnership said:
“Although this delay has been triggered by concerns over the Coronavirus it does provide a much needed window for those affected by the legislation.
“We have been working with clients to quantify what the changes meant for them and how they could mitigate some of the impact but are aware that thousands of people were sleepwalking into what could be a significant problem.”
“You’re not going to get a third chance so now really is the time to be speaking to us about it”
If you are concerned about IR35 and what the new legislation could mean for you then you can contact ATN on 01474 326224. Alternatively, visit the website; tweet @atnpartnership or email firstname.lastname@example.org.