Off-payroll working (IR35) delay

Earlier this evening the Government announced that the reform to the off-payroll working rules that would have applied for people contracting their services to large or medium-sized organisations outside the public sector will be delayed for one year from 6 April 2020 until 6 April 2021. 

In its release HMRC stated:

'This is part of additional support for businesses and individuals to deal with the economic impacts of Covid-19.

'This means that the different rules that exist for inside and outside the public sector will continue to apply until 6 April 2021. '

The announcement ended by stating this:

"is a deferral of the introduction of the reforms, not a cancellation.

'The Government remains committed to introducing this policy to ensure that people working like employees, but through their own limited company, pay broadly the same tax as individuals who are employed directly.'

Conclusion

With everything else that is going on at the moment this move to defer the extension of the off-payroll working rules from the private sector to the public sector is a welcome common sense move. Although, for many it comes too late.

About the author

Brian Palmer is an independent tax policy adviser, writer and blogger.

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