The Chief Treasury Secretary, Stephen Barclay, announced on 17th March 2020 that the controversial tax measures put in place only a week before have been temporarily rolled back as part of a broad package to combat the economic impact of COVID-19.
Barclay stressed that the decision to push back the legislation till 6th April 2021 was "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".
There is no doubt that both businesses and contractors alike welcome this temporary change in policy. Especially given the economic challenges the UK has on the horizon. “Although the wider backdrop of COVID-19 is concerning, this is great news,” says James Poyser, chief executive of inniAccounts.
IR35 specialist Seb Maley reflected: “Whatever commentators might try and claim, nobody saw this one coming, particularly given last week’s Coronavirus-dominated Budget confirmed that reform would still go ahead".
This reprieve will be key in giving contractors more time to adapt to the legislation. The Consultancy Group will be keeping a close eye on how both employers and candidates react to the news. If you'd like to discuss the recent changes further please don't hesitate to contact us.