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In a surprise announcement the Government agreed to defer the changes to IR35 and the private sector for another year. This was as a result of the negative impact caused by the COVID-19 pandemic.

Speaking in Parliament Stephen Barclay Chief Secretary to the Treasury said: “The government is postponing the reforms to the off-payroll working rules, IR35, from 6 April 2020 to 6 April 2021.” He announced that the IR35 changes to the private sector which were to be introduced in April 2020 will now be delayed for another year and become effective from April 2021

From April 2021 onwards the new IR35 changes for the private sector are due to take effect. Perhaps the most important point to make is that the underlying principles of IR35 will remain unchanged. What is changing from April 2021 is who is responsible for determining whether an engagement is inside or outside of IR35.

 

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