IR35 changes delayed to April 2021

HM Treasury’s announcement on 20 March 2020, that the roll out of IR35 changes will be delayed by a year until 6 April 2021 will have been welcomed by many. As we have reported in recent months, these changes were aimed at bringing the private sector in line with the public sector. End clients would have been required to assess the tax status of an individual providing services through a personal services company.

The proposal proved deeply unpopular among many contractors with reports of clients taking a very risk-adverse approach in preparation for the changes, with significant financial consequences for the contractor. The government is keen to stress that this is just a delay as part of its coronavirus economic response package.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.