The Government has announced a year’s delay to rolling out IR35 to the private sector due to the coronavirus outbreak.
The Government has decided to delay the changes to IR35 in the private sector due to the coronavirus outbreak.
Speaking in the House of Commons today, HM Treasury Minister announced that given the circumstances and coronavirus pandemic, HMRC would delay the roll-out of the changes to IR35 in the private sector until 6th April 2021. The move follows warnings that the self-employed would be among the hardest hit by the loss of work during the crisis.
Andy Chamberlain, Director of Policy at IPSE, the Association of Independent Professionals and the Self-Employed, welcomed the news and said: “The government has done the sensible thing by delaying the changes to IR35 in the private sector.
“These changes have already undermined the incomes of many self-employed businesses across the UK. However, they would have done even more serious damage if they had gone ahead as planned.
“It is right and responsible to delay the changes to IR35 for at least a year during the coronavirus crisis, to reduce the strain and income loss for self-employed businesses.
“This is a sensible step to limit the damage to self-employed businesses in this grave and unprecedented situation, but we also urge the government to do more. It must create an emergency Income Protection Fund to keep the UK’s crucial self-employed businesses afloat.”