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IR35 reforms postponed until April 2021

  • 18/03/2020
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IR35 reforms postponed until April 2021
Changes to complex tax rules known as IR35 have been postponed until April 2021 to ease the strain on businesses during the coronavirus crisis.


The changes are likely to impact many self employed brokers who work for one company and keep fairly regular hours.

Speaking at the dispatch box during a Budget debate in the Commons yesterday, Steve Barclay, chief secretary to Treasury, said the decision to push the reforms on by 12 months was a deferral and not a cancellation and the government remained committed to reintroducing the policy.

The purpose of private sector IR35 reforms is to ensure contractors working like employees but through their own limited company pay broadly the same tax as staff who are employed directly.

Instead some firms who rely on contractors, as if they were full time employees, are keeping them off the payroll to keep their own taxes and those of the contractor as low as possible.

Under the reforms, companies would have to decide if they were going to treat the contractor as an employee or self employed person and pay them as such.


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