IR35 legislation for the private sector is going ahead in April but a review has been announced

10th January 2020

 
This week a disappointing blow came to the contracting community and those who have been desperately campaigning to stop the introduction of the off payroll rules to the private sector. The Government announced on the 7th of January that there will be a review into the implementation of the off-payroll working rules however, the reform will still be happening on the 6th of April this year. 

The Government has described that it will gather evidence from affected individuals and businesses as part of the review and that this will ensure the smooth implementation of the reforms. This is in an effort to address the huge amount of concerns communicated by businesses and individuals across the sector. Another aim of the review is to assess if additional support is needed for the self-employed who are outside of IR35 – ensuring that they are not impacted. You can read more from the Government here.

Dave Chaplin, CEO of our partner Contractor Calculator, described that “The fact that the proposed April 2020 rollout is going ahead while the legislation is under review suggests that this Government doesn’t have the best interests of the freelance sector and indeed UK Plc at heart.” Despite this analysis, with the review due to end mid February, many of the contracting community are urging their peers to prepare themselves for the changes but to not stop campaigning. Dave Chaplin has asked that “All parties likely to be affected by the new Off-Payroll Tax should urgently write to their MP and the Chancellor and request a delay, explaining the impact it will have on their business.”
 

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