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IR35 Changes: Postponed

View profile for Jemma Bennett
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IR35 Changes Postpostponed

IR35 Changes Postpostponed Initially, the changes were set to come into play on the 5th April 2020.

Due to the effects of COVID-19 and the immense pressure businesses are currently under, the Government has announced that the extension of IR35 to medium and large companies in the private sector is being postponed until 6 April 2021.

What are the IR35 rules? 

The IR35 rules are aimed at making sure that where a contractor who provides their services through an intermediary (often their own limited company) would be considered to be an employee if that intermediary were not used, that contractor is subject to broadly the same tax and National Insurance contributions as employees. 

Chief Secretary to the Treasury Steve Barclay stated this week, “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".

For more information on IR35, please contact our Commercial Law team on 01245 228104.

This is not legal advice; it is intended to provide information of general interest about current legal issues.