18 March 2020

Government delays implementation of IR35 Off Payroll Working Rules

The Government has confirmed that the implementation of the extension to the IR35 offpayroll working rules has been delayed for a year.

The rules, which currently affect those who contract their services to the public sector through personal service companies, and require the client to determine whether the contractor is in fact a "disguised employee", were due to be rolled out to the private sector from 6 April 2020. The rules have already seen several high profile cases where TV presenters who believed themselves to be contractors were deemed by HMRC and the Tax Tribunals to be employed, resulting in hefty tax bills to pay.

The Government's confirmation that this is merely a delay means contractors and end clients will now have more time to prepare for the implementation of the reforms. There are currently no plans to scrap the rollout to the private sector. We hope that this will mean that end clients will take the time to review their contractual and working arrangements with each contractor rather than making blanket "one size fits all" type decisions.

We will keep you updated on any major developments in this area as things progress. In the meantime, please do reach out to your normal Forsters contact to discuss specific matters.

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