IR35 delay | 'This will be a welcome relief for contractors'

Due to growing concerns over the expected loss of work following the coronavirus outbreak, the UK Government has announced a last-minute postponement to upcoming IR35 changes.

The new rules, which were due to come into action in April 2020, would have seen every medium and large private sector business in the UK become responsible for setting the tax status of any contract worker they use.

However, in light of the COVID-19 outbreak, the legislation now won’t come into effect until April 2021. This decision was also made following pressure from campaigners, contractors and the House of Lords, who warned that the inevitable loss of work due to coronavirus for contractors deemed inside IR35 would prove catastrophic, ContractorCalculator reported.

Speaking in Parliament, Chief Secretary to the Treasury, Steve Barclay, said: “This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals.