The government has announced that it is delaying the reform of off-payroll working rules (also known as IR35) for one year from 6 April 2020 until 6 April 2021. These rules were going to apply to people outside the public sector, contracting their services to medium to large-sized companies.
The decision was taken as one of a number of measures introduced to give support to businesses and individuals in the light of the economic impact of the Corona Virus (COVID-19.) It means that the existing rules will continue to apply until April 2021.
We would stress that this is a delay and not a cancellation: the government is still determined in the longer term to introduce the new rules to ensure that people who basically work like employees (but through their own limited company) pay roughly the same level of tax as the corresponding individuals who are directly employed by an organisation.
As always, and particularly in these uncertain times, when the Government is liable to change things quickly, if you have any questions at all about this or any other accounting, taxation or general financial matter, please do not hesitate to get in touch with us.
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