IR35 changes postponed

18 March 2020

The government has announced a last-minute postponement to the implementation of the off-payroll (IR35) tax in light of the recent COVID-19 outbreak, with the legislation now due to be reintroduced in April 2021.

The decision was taken following significant pressure from many who warned that the inevitable loss of work due to the virus for contractors deemed ‘inside IR35’ and effectively forced into ‘zero rights employment’ would prove catastrophic.

“This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals. This is 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 amount of tax as those employed directly,” announced the chief secretary to the Treasury, Steve Barclay MP, to the House of Commons.

Alan Suggett, partner at UNW LLP and media officer at NASDAL (National Association of Specialist Dental Accountants and Lawyers) said, “While postponement is welcome, we know that dentists and dental practices currently have many more pressing concerns in the wake of the coronavirus outbreak.”