The controversial IR35 Tax Reforms were confirmed in last week’s budget, have been delayed by a year, Chief treasury secretary Steve Barclay confirmed last night.
IR35, otherwise known as the “off-payroll tax”, was set to be introduced next month but will now be deferred for 12 months, as part of the broad package of measures the Treasury has announced to protect the economy from the coronavirus outbreak.
This news is welcomed among contractors who have spoken out against this legislation, although as Dan Fallows, Director at Gorilla Accounting says, this isn’t a time for complacency:
“This deferral is good news, especially in light of the highly uncertain situation we find ourselves in battling coronavirus and the huge economic impact. However, this is still a long-term issue as the government still intend to bring these rules in for the private sector next April. We hope that common sense will prevail in the intervening time and that this damaging legislation can be scrapped once and for all, as both businesses and contractors will suffer unnecessarily.”
Any contractors, freelancers or locums who are concerned about IR35 should seek specialist advice. Gorilla Accounting is an accountancy firm exclusively for contractors, and our team of accountants is happy to provide free, impartial advice for people during this difficult period.