fb-pixel
News

COVID-19 and IR35: Should your clients relax now the legislation is postponed?

Avatar
Written by Caunce O'Hara
Last updated July 15, 2020

Steve Barclay, the Chief Secretary to the Treasury, announced that due to the effects of Covid-19 (Coronavirus), the changes to off-payroll working (IR35) in the private sector would be delayed by 12 months.

Many businesses will be heaving a great sigh of relief at the news – one less thing to worry about in the short term, right?

However, the Government has made it very clear the changes are coming in April 2021. So, whilst it might be tempting to put everything on hold for 12 months, we do suggest that people don’t wait until the first quarter of next year to return to the issue.

For those of you who were already dealing with the new legislation, this preparation will not be in vain as you will need to do this come next year.
However this does mean that for the next 12 months, the decision and potential IR35 liability in the private sector, remains solely with the Personal Service Company (PSC).  As it is only the PSC who can make that decision, it is only the PSC who is liable.

We are, of course, on hand to help contractors operating through their PSCs with contract reviews, and can offer insurance cover for concerned contractors who want to ensure they are protected.

We will continue to provide guidance and support to all our clients; however, for now at least, private sector end-clients can concentrate on dealing with their contracting and supply chain issues, and pick up IR35 again later in year once everything is back to normal!

Markel’s COVID-19 Hub contains a range of information and resources to best support our clients during this difficult time.



Related IR35 content

IR35 news: Eamonn Holmes loses his IR35 case against HMRC

Holmes, a broadcaster for over 40 years, was providing his services through a limited company called Red, White and Green…

Read more

HMRC “kicks back” in latest IR35 case

HMRC “kicks back” at Upper Tribunal in latest win against Paul Hawksbee In July 2019 we saw the fight between…

Read more

Off-payroll working in the private sector

Despite the protests and lobbying of the Government, the only reference in the Budget notes makes it very clear that…

Read more

The impact of finance sector IR35 decisions on contractors

IR35 reform to the private sector was already having a negative impact on contractors working in the finance sector prior…

Read more

Lord’s committee expresses concerns over IR35

IR35 off-payroll reform was due to be rolled-out to the private sector on April 6th of this year, but due…

Read more

Suggestions to move IR35 reforms to 2023 are rejected

Amendments to the IR35 private sector are set to go ahead from April 2021, despite suggestions from a Conservative MP…

Read more

COVID-19 and IR35: Should your clients relax now the legislation is postponed?

Steve Barclay, the Chief Secretary to the Treasury, announced that due to the effects of Covid-19 (Coronavirus), the changes to…

Read more

11th hour delay for IR35 private sector reform due to COVID-19 welcomed

The Government has delayed its controversial IR35 private sector reform by one year, until April 2021, because of the COVID-19…

Read more

No delay to IR35 rollout as the Government launches off-payroll review

The Government launched its off-payroll review on January 7th with regards to the implementation of the changes to the off-payroll…

Read more

What are the political parties saying about IR35?

In April 2020 the contractor and freelance community are set to be hit by changes to IR35 legislation which could…

Read more

Six reasons for PSCs to be proactive to respond to the IR35 private sector changes and not wait until April 2020 to do so!

Since April 2000, the Intermediaries legislation has made the individual contractor trading through his/her own Personal Service Company (PSC) the…

Read more

What impact will IR35 reforms have on North Sea operators?

With high levels of talent engaged through off payroll structures in the energy sector, the North Sea operators will feel…

Read more

Are you ready for IR35 changes?

Proposed changes to IR35 legislation could mean thousands of contractors may pay more tax. With the Government’s consultation on contracting…

Read more

IR35 and CEST Update

The IR35 story continues to rumble on taking twists and turns along the way and most of us believe it…

Read more

U-Turn on Self-employed NIC but no change to Public Sector rules on IR35

The ink has yet to dry on Philip Hammond’s first budget as Chancellor but his proposed national insurance increases for…

Read more

IR35 Products & services

Caunce O’Hara’s partnership with Markel enables us to offer a broad range of IR35-based products to protect contractors, fee-payers and end clients across the UK.

IR35 Hub Related IR35 content