Chief Treasury Secretary Steve Barclay has announced that the IR35 legislation is to be pushed back by one year to help businesses and individuals.
Delayed to 6 April 2021
The changes to the IR35 working rules have been delayed by 12 months, with measures now coming into effect on 6 April 2021, due to the business uncertainty surrounding the coronavirus pandemic.
IR35 is designed to close the loophole in the tax system where workers could use the setup of a limited company structure in order to pay less tax.
The IR35 legislation due to be introduced next month would have made organisations responsible for determining whether a contractor working for them should be treated as an employee for tax purposes.
Deferral to help businesses
Confirming the decision was “a deferral, not a cancellation”, Steve Barclay said that the move is part of a broad package of measures the Treasury has announced to protect the economy and that the government remains committed to reintroducing this policy next year.
Read the article in City AM
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