In an announcement delivered by Stephen Barclay MP on the evening of the 17th March 2020, the government announced a shocking delay to the off-payroll reforms.
The announcement is a response to the coronavirus (COVID-19) pandemic currently sweeping the UK and has thus far been welcomed by industry bodies who have previously been lobbying for a delay to the reforms.
During the announcement, the government were insistent that the postponement is simply a deferral and that reforms to the off-payroll (IR35) legislation will still be going ahead as planned on 6th April 2021, rather than being implemented on the 6th April 2020.
“This is 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.”
The delay has been put in place to relieve the pressures to businesses and individuals during these uncertain times.
However, with the news of the deferral being announced so soon before the planned reform date of the 6th April 2020, many businesses have already begun implementing their IR35 plans with some even having issued Status Determination Statements to contractors.
Support from SJD Accountancy
Whilst we hope that this is seen as welcome news for those working through your own limited company, we understand if you have questions relating to the IR35 status of your own contracts. Please get in touch with your accountant if you have any questions or would like any clarification.