Originally written by Anna Jordan on Small Business
The government has decided to delay the incoming IR35 rules due to the coronavirus pandemic.
Chief treasury secretary, Steve Barclay, said that the reforms will be pushed back to 6 April 2021. The move comes among a raft of announcements supporting small businesses last night (17 March).
However, Barclay stressed that it is “a deferral, not a cancellation, and the government remains committed to reintroducing this policy”.
Relieved but still frustrated
Business experts have welcomed the news but are unhappy that the government intends to plough ahead in 2021 without further consultation.
Qdos CEO, Seb Maley, commented:
“The government has seen sense and made the right call in these unique circumstances. Given the economic challenges that lie ahead of the UK, now certainly would not have been the right time to roll out needless tax changes that endanger hundreds of thousands of contractors’ livelihoods.
“It does give private sector firms vital time to prepare for reform, which can only be a good thing for contractors. What matters now is that businesses use this time wisely.”
Claire Brook, employment law partner at Aaron & Partners, thinks the announcement is overdue:
“Although this will come as welcome news to a huge number of employers,