Reforms to IR35 delayed amid Covid-19 pressure

The Government announced yesterday, Tuesday 17 March 2020, that the implementation of the reforms to the IR35 legislation is postponed until 6 April 2021.

The purpose of the reforms is to ensure that people working like employees but through their own service company pay broadly the same tax as people employed directly by a company. The detail of the legislation is complex and the implementation of the reforms will be administratively burdensome on all those affected.

For more detail on the IR35 reforms please see our previous blog.

The Government has postponed the implementation of the reforms as part of a package of measures intended to alleviate pressure on businesses caused by Covid-19. The Government emphasises that the postponement is not a cancellation and that it remains committed to reintroducing the policy in 2021.

This will be some comfort to businesses, many of which were not sufficiently prepared for the April 2020 deadline, and which are likely pre-occupied by other challenges posed by Covid-19.

If you have any questions about this, or any other employment matters, please contact any member of the Edwin Coe Employment team.

Please note that this blog is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this blog.

Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln’s Inn, London, WC2A 3TH. “Partner” denotes a member of the LLP or an employee or consultant with the equivalent standing.

Please also see a copy of our terms of use here in respect of our website which apply also to all of our blogs.