Private Sector IR35 Postponed

For the last 3 years I have published posts relating to IR35, whether that is for the Public or Private Sector and therefore I felt it was only right I provide a brief overview of the change regarding IR35 2020.

Most of you are probably aware, the IR35 legislation (off-payroll working rules) were due to change on 6th April 2020 for the Private Sector, in order to match the legislation that took place in April 2018 for the Public Sector.

For those that aren’t aware of the IR35 legislation, ultimately the purpose is to ensure that all contractors to be ‘seen/deemed’ as employees (and treats as such) are taxed as an employee also.

However, reforms will now come in on 6th April 2021 as part of the response to Covid-19 (aka: Coronavirus), this is part of a coordinated action by Government to support businesses and individuals.

Financial Secretary to the Treasure, Jesse Norman said, “We will do whatever it takes to support the British economy through Covid-19. That is why, as well as the current support measures we have announced, we have delayed the off-payroll working reforms to April 2021”.

Personally, I and my Private sector clients put in a lot of blood, sweat and tears over the last year to ensure those impacted by IR35 were assessed, contracts appropriately amended, and all processes reflected IR35 outcomes so to find out it was ‘postponed’ at the last hurdle felt like a kick in the teeth for the hard work we have put in.

However, that work does not get forgotten about, instead it is work that is put into place ready for when this legislation takes effect next year. Instead, the work that some companies will have to do for the next 12 months is work we already have in place.

Ultimately, the postponed legislation to the Private Sector is only a good thing, it helps businesses and individuals in an already crazy world.

Keep safe, sing happy birthday and more so, stay at home where possible.