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IR35 delayed until April 2021



The UK government has announced that it will be postponing its IR35 reform for one year, until 6th April 2021. 

The decision was announced in parliament by Steve Barclay, Chief Secretary of the Treasury, on Tuesday 17th March. He said the decision was made as a "response to the ongoing spread of COVID-19 to help businesses and individuals" 

The new off-payroll working rules came into force for the public sector in 2017, and were due to be extended to medium and large businesses in the private sector on the 6th April 2020. Under the reform, contractors would no longer be responsible for determining their employment status and paying the relevant tax - this would become the responsibility of the end client. 

The government has stressed that IR35 reform will still go ahead, just at a later date than expected. Businesses and contractors will still need to prepare for the changes in off-payroll working rules by April next year. 

“This is a deferral, 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,” 

Fircroft will continue to provide an IR35 review service to businesses who still require it. We have partnered with tax experts QDOS for a this service and can undertake complete project management of IR35 reform and implement any required changes that are required by your business in advance of the new legislation. 

Find out more about Fircroft's IR35 service, or contact our leading consultants for more information.

IR35 reform has been delayed for one year until 6th April 2021

Recent Comments
Hi I’m currently contracting with Fircroft. I’ve asked my agent to confirm I can still work through my LTD company as a result of the IR35 announcement. He said the announcement doesn’t necessarily mean the end client will still allow LTD companies. I can’t get a definitive answer from anybody at the moment. How do I stand on this? I’ll be very unhappy if after the Chief Secretary to the Treasury says I can continue, someone else says I can’t. I’ll be the only person in my house earning as my wife will not be working so she can take care of our daughter. The deferral was great news but maybe short lived. Thanks John
John Wilkins, 18 March 2020
Hi John, We are currently in the process of contacting all clients regarding Tuesday's welcome news. Those clients that have already responded are mostly deferring any planned changes to contracts where anyone was deemed inside. As soon as we have news on the end client you are currently engaged with, we will be in contact. Paul Stephenson - Fircroft UK Operations Manager
Paul Stephenson, 19 March 2020
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