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Despite the Chancellor confirming only last Wednesday that the off payroll working rules for the private sector would come into force from the 1 April 2020, Chief Secretary to the Treasury Stephen Barclay told MPs yesterday that the rule change would not now come in until 6 April next year, 2021.
Mr Barclay, speaking during a Commons debate on the Budget, said the change was part of the measures announced to protect the economy from the coronavirus outbreak.
He said the decision was “a deferral, not a cancellation, and the government remains committed to reintroducing this policy”.
It should be said that the rules for IR35 remain in the legislation as they have been for many years and it remains the responsibility of contractors working through their own company to consider each engagement they undertake and whether the rules should be applied. However, the shift of responsibility of applying these rules to the company engaging the individual to work in their business is now postponed.
Under current circumstances this is very welcome news but once the CV-19 crises passes will once again rear it’s ugly head and the Team here at Burgis & Bullock will be available to help both employers and contractors to work through the options.