The Government has announced that the planned IR35 off-payroll working rules, due to be introduced to the private sector in April will now be delayed until 6 April 2021. This position has changed since the announcements made prior to and during the Budget 2020. The pressure had been mounting on the Government with the Lord’s review, but it is the Covid-19 outbreak that the government cites as the understandably reason for the delay.

As part of the Government’s response to Covid-19, Jesse Norman, Financial Secretary to the Treasury said:

“We will do whatever it takes to support the British economy through Covid-19. That is why, as well as the current support measures we have announced, we have delayed the off-payroll working reforms to April 2021.”

The Government announcement goes on to say:

“The government continues to believe that it is right to address the fundamental unfairness of non-compliance with the existing off-payroll working rules, however the government also recognises that the reforms would be a significant change for both businesses and contractors. Delaying means changes will not need to be implemented until next year.”

The current Finance Bill legislation will  be amended to show the new start date of 6 April 2021.