Controversial IR35 tax reform delayed

THE controversial IR35 tax reform has been deferred for a year in a bid to ease pressure from businesses amidst the Covid-19 (Coronavirus) pandemic.

Previously due to come into effect in April, the new rules would have made privately owned companies responsible for determining the employment status of their contractors and for deducting any tax and NICs accordingly. The reform will now be implemented in April of 2021.

The Building Engineering Services Association (BESA) welcomed the decision. The association’s head of employment affairs, Paula Samuels, said, “This is a welcome reprieve for our members, many of whom are already suffering the effects from the financial and economic fall-out of coronavirus.”

Qdos Contractor CEO, Seb Maley, said, “The government has seen sense and made the right call in these unique circumstances. Given the economic challenges that lie ahead of the UK, now certainly would not have been the right time to roll out needless tax changes that endanger hundreds of thousands of contractors’ livelihoods.

“It does give private sector firms vital time to prepare for reform, which can only be a good thing for contractors. What matters now is that businesses use this time wisely.”