Government delays IR35 reforms until 2021

Put back to April 2021

James Phillips
clock • 2 min read

The government has postponed changes to IR35 tax rules until 2021 to relieve the pressure on businesses during the coronavirus crisis, just a week after the Budget confirmed they would go ahead.

The IR35 changes would see workers previously classed as contractors now potentially determined as employees for tax purposes, with medium and large private sector companies setting tax statuses. However, the move has been criticised for raising taxes and National Insurance contributions for contractors while denying them employment rights including holiday and sick pay, pension provision, and parental leave. As part of a wider £330bn financial package announced yesterday, chief secretary to the Treasury Steve Barclay said the measures would now be introduced from 6 April 2021. Bar...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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