The UK government have announced that the extension of existing IR35 legislation into the private sector will be postponed until April 2021. The decision has come as part of the governments plan to protect the economy during the COVID-19 crisis.

The reforms, which are aimed at improving compliance and alignment across all sectors, were set to extend the IR35 legislation into the private sector. The changes to legislation are set to affect:

  • Contractors providing a service through an intermediary, such as a Personal Service Company (PSC).
  • Medium to large-sized organisations who engage with individuals via a PSC. Medium to large-sized organisations are those with a turnover that exceeds £10.2M.
  • Recruitment agencies and other organisations who supply personnel operating via PSCs.

The government have confirmed they are still committed to introducing the policy and measures, but within the current economic climate and challenges faced across all sectors in the wake of COVID-19 it has been decided to postpone its implementation until April 2021. Members of the Treasury have made clear that this decision is simply a deferral and not a cancellation of the policy.

For more information on IR35 and its April 2021 implementation please visit: blog/ir35-april-2020-private-sector-changes-confirmed-what-you-need-to-know/bp20/

If you are concerned about how these new IR35 rules may affect your business or if you would like further information, do not hesitate to contact us on 0203 019 4990 or email us at info@bishopsgatepay.co.uk.