Important Update – IR35 (off payroll working)

Category: Employment, News

With all the uncertainty currently, the government has given businesses and individuals some welcome relief by postponing the IR35 (otherwise known as off payroll working) extension to medium and large companies in the private sector from 6 April 2020 to 6 April 2021.  

As a reminder, the IR35 tax rules are aimed at ensuring that, where contractors provide their services through an intermediary (often, a limited company), but are, in reality, disguised employees, that they are treated as employees for tax and national insurance purposes.

The announcement was made in the House of Commons yesterday with it being made clear that the change was in direct response to the coronavirus outbreak and that it was definitely a postponement; not a cancellation of the extension of IR35.

If you need further advice or have any questions about this, please contact our Employment team by clicking here, calling 01752 827081 or emailing [email protected]