HM TREASURY ANNOUNCE DELAY TO PRIVATE SECTOR IR35 REFORMS TO APRIL 2021

The Government has announced the postponement of the extension of the new Off-Payroll Worker Rules to the private sector due to commence on 6 April 2020 by one year with them now being introduced from 6 April 2021. 

The reforms, which pass responsibility for determining a contractor’s status from the individual to the organisation which employs their services, were introduced to the public sector in 2017. Their extension to the private sector has proved controversial, with claims form industry that the rules are too complex and that HMRC’s online tool check employment status for tax (CEST) used to determine whether or not they apply to contractors is not robust enough to provide a certain or accurate outcome.

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