Government Announces Delay of IR35 reforms until April 2021
On Tuesday 17th March the government announced that the reforms to the off-payroll working rules would be delayed for one year from 6th April 2020 until 6th April 2021. This applies to people contracting their services to large or medium-sized businesses within the private sector.
This decision forms part of additional support for businesses to deal with the economic impact of Covid-19. As a result, the current rules that exist for PSC’s inside and outside the public sector will continue to apply until 6 April 2021.
The government are keen to clarify this is a deferral not a cancellation of the reforms. They remain committed to introducing the policy in April 2021.
If you have any questions contact us at IR35@manpowergroup.co.uk
Over the past 12 months we have been working closely with our Clients, Contractors and Suppliers to ensure the implementation of the IR35 reforms have minimal impact on operations and that businesses are well prepared. The recent announcement confirming the deferral allows employers to review their IR35 programme preparations and to plan on how to bring them forward for April 2021.
We will continue to update these pages with more information.
From 6 April 2021, the responsibility for applying the off-payroll rules will move from the contractor to the ‘end-user’. And, where an individual is ‘inside’ the rules, it will be the responsibility of the ‘fee payer’ to make the appropriate deductions as required by HMRC, such as income tax, employer and employee NIC and the apprenticeship levy.
Click on the tiles below to find out how these changes will affect you, and see a glossary of IR35 terms.
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