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IR35 delays announced amidst COVID-19 pandemic

The shock IR35 implementation delay is a welcome relief amidst a time of uncertainty for the UKs flexible workforce.

By Beverley Da Silva on 18 Mar 2020
Read time: 1 minutes

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Chief Treasury secretary Steve Barclay announced on Tuesday, 17th March, the government’s decision to defer* the private sector IR35 reforms for a year, to 6 April 2021. 

While many held out hope for a similar announcement to be made during the Spring Budget, Rishi Sunak instead focussed on the government’s plan to minimise the effects of the Coronavirus outbreak on small businesses.

The decision to defer the reform mirrors the brevity of the crisis Britain faces at present. Self employed workers have been afforded an extension to this implementation, along with the promise of financial assistance in the form of abolishing business rates for 12 months – regardless of their rateable value. This comes as a relief to a volatile flexible workforce market in a time of great uncertainty. 

Some businesses who have been preparing for the legislative changes may feel frustration in the lateness of this announcement, a meagre 3 weeks before it’s planned deployment, as they see the Status Determination Statements (SDS) they have been working on for their contractor database become nullified. 

This is an opportune time to take the outcome of these determinations and have a closer look at them, as a measure to avoid incorrect determinations or blanket determinations which would ultimately have financial implications in the long run. 

Nixon Williams understands the complexity and intricacies of IR35, along with the concerns many businesses and contractors are facing. 

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