March 18 2020
Chief treasury secretary Steve Barclay announced last night that the IR35 tax reforms would be delayed by twelve months, less than a week after government confirmed that it was pressing ahead with the controversial measures in the Budget.
The changes to IR35 were intended to move people employed through a subcontract company onto the payroll of the contractor where the Revenue could collect PAYE and National Insurance through the payroll. The changes were subject to much criticism from business, with claims that more time was needed to prepare for the changes. The global pandemic of COVID-19 was given as the reason for the delay which was announced as part of of a £330bn financial package to help the UK economy weather the storm. According to Barclay:
" the delay response to the ongoing spread of COVID-19 to help businesses and individuals. This is a deferral, not a cancellation, and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company, pay broadly the same tax as those employed directly. "
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