IR35 Reforms Delayed Until 2021
Steve Barclay, Secretary of the Treasury, confirmed in parliament on March 17 that the reforms originally planned from April 2, 2020 for the off-payroll working rules, will be delayed for 12 months until April 6, 2021.
“I can also announce that the Government are postponing the reforms to the off-payroll working rules IR35 from April 2020 to 6 April 2021. The Government will therefore not move the original resolution tonight but will shortly table an additional resolution confirming that we will reintroduce the off-payroll working rules provisions by amending the Bill, with a commencement date of 6 April 2021. This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals. This is a deferral, not a cancellation, and the Government remain committed to reintroducing this policy to ensure that people who are working like employees, but through their own limited company, pay broadly the same tax as those employed directly.”
This change is part of additional steps take to support business and individuals with the COVID-19 economic impacts. This results in different rules existing internally and externally to the public sector, remain until 6 April 2021.
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