In a shock announcement delivered on the evening of 17th March by Stephen Barclay MP, Chief Secretary to the Treasury, the government pushed back the off-payroll reforms to the private sector, which were due to be implemented on 6th April 2020.
The private sector has been gearing up for these IR35 reforms since they were announced in the 2018 Autumn Statement, but they are now set to be delayed in order to alleviate the pressures on businesses and individuals during the current COVID-19 crisis. However, the government has said it remains committed to this policy, insisting it is a deferral, not a cancellation, and we can expect it to come into force from 6th April 2021. This will come as welcome news to many across the accountancy and contracting industry. For many contractors, this delay will mean that they can continue to trade through their personal service company and will retain the responsibility for determining their IR35 status. We are happy that the government has taken this action and, through our role as founding members of FCSA, we will continue to push the government to reconsider the reforms. Our brands have made a variety of resources available to support our contractors with information about IR35. This includes blogs, downloadable guides and articles in external publications. If you would like more information, we’re pleased to share these resources with you below: