On Tuesday 17th March, the House of Commons announced that due to the outbreak of Covid-19 (coronavirus) that the IR35 off payroll reform, in the private sector, will now be delayed. This will move from April 2020 to April 6th 2021.
Mr Steve Barclay quoted: “This is 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 is one of many measures introduced by the Treasury, and a welcome one to contractors and freelancers at a time that was already shrouded with uncertainty.
Integro Accounting CEO, Christian Hickmott, commented: “Contractors started 2020 with much trepidation in the contracting market feeling pressure to make quick decisions in a short amount of time. With the current state of the economy this comes as a warm welcome in a dark time.”
“There are more than five million self-employed people across the UK, making up 15% of the workforce. This delay could reduce the strain on contractors as it gives private companies and agencies alike the time needed to successfully prepare for this reform. We will continue to work with our clients to help support everyone in this new transition.”
If you need more guidance on what these IR35 changes mean for you and your current contract, we advise to engage with your fee payer at your earliest convenience. Our team at Integro Accounting are here to help support you with any further questions so to speak to a member of our team you can call us on 0207 0962659 or complete our Call Back Request form to speak at a time convenient to you.
For more information on IR35 click the following links: