Government Announces Delay to Off-Payroll Reforms

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The private sector has been gearing up for the off-payroll reforms since the announcement in the 2018 Autumn Statement. But the impending IR35 reforms are set to be delayed until 2021, following an announcement from the government on 17th March 2019.

If you missed the conference, we’ve summarised the key points below.

Why are the IR35 reforms being delayed?

The delay was presented as part of a £330 billion economy financial package as a response to the coronavirus threat and the package is set to aid the UK in dealing with the economic fallout caused as a result of the pandemic. It’s believed that this delay is intended to shield businesses and contractors from the impact of both the virus and from losing employment rights.

The decision was announced by the chief treasury secretary, who confirmed that the reforms would be delayed until 6th April 2021. However, he was clear in his stance that this measure was ‘ a deferral, not a cancellation’ and assured listeners that the government still intends to push forward with these changes.

What does the delay to off-payroll reforms mean for contractors?

We consider this delay to be a positive step, as it allows both businesses and contractors the time to make preparations. Although the government is still adamant that these changes are impending, it’s likely that the decision followed the pressures from the flexible workforce, from campaigners and from the House of Lords

As contractor support specialists, we wholeheartedly welcome this delay and believe that this is a positive step in the right direction and shows the commitment to not only UK businesses, but also to the contractor workforce. Though we appreciate that some businesses have already made steps towards the reforms, overall, this shows that the UK government is listening to the needs of the economy and we’re interested to see what will follow.

Find out more

For more information about the changes to the off-payroll reforms, take a look at our IR35 contractor resource centre, where we’ll be regularly updating you with legislative changes, news, and announcements.