IR35 reforms to be delayed until 2021

IR35 reforms to be delayed until April 2021

There is a little bit of good news. The Chief Treasury Secretary, Steve Barclay, has announced that the IR35 reforms will be pushed back by one year, to help protect the economy from the impact of the coronavirus outbreak.

Government presses pause on IR35 changes

The new measures will not come into effect on 6 April 2020 as previously expected and will instead apply from April 2021. It is important to know that this is a delay rather than a cancellation.

What are the IR35 reforms?

The off-payroll working rules have been in place since 2000. In 2017 the Government reformed the operation of the rules in the public sector and is extending this to all medium and large organisations. This will shift responsibility for operating the IR35 rules to the organisation that engages the worker.

Further details and guidance on how to prepare for the changes can be found here.

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