COVID-19: IR35 reforms postponed until 2021
This article was last updated on 20 March at 11:03.
The Government has announced that the extension of IR35 reforms within the private sector will be postponed until April 2021 as a part of measures to deal with the coronavirus.
Whilst for many businesses the reprieve will come as welcome news, a large proportion will have undertaken a considerable amount of work reviewing existing arrangements.
It is our understanding that the Government still intends to press ahead with implementing the measures. All businesses need to review their current working arrangements and make best use of the extension period which will include:
- Identifying the off-payroll workforce
- Making the decision to offer an employment contract; or
- Engaging off-payroll workers through umbrella providers.
The impact the COVID-19 outbreak will no doubt lead to businesses looking at their work-force requirements and any review must take into account the use of off-payroll workers. It is hoped that some changes are made to the legislation to take into account the challenges UK businesses will face going forward.