Off Payroll Working Rules / IR35 reforms postponed
The government has announced that it is delaying the implementation of the Off Payroll Working Rules to 6 April 2021, in response to the spread of Covid-19 (Coronavirus).
The rules, which were due to come into force on 6 April 2020, were set to transform the contracting landscape, with new obligations for “end user clients” who engage contractors via personal services companies (see our previous blogs here.)
Contrary to calls from the contracting sector, the rules are not being scrapped altogether – they are just being delayed for a year, in order to help businesses and individuals to cope with the Coronavirus crisis.
Whilst this no doubt provides welcome breathing space for some companies who were still scrambling to prepare, it will be incredibly frustrating for many others who have undertaken huge amounts of work to be ready for the 6 April deadline. That said, it is a helpful acknowledgement that HR and other teams across businesses are under serious pressure in coping with the issues arising from the Coronavirus.
Find all our Covi-19 related advice here.
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Kathryn Dooks is an employment partner
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