The government announced on 7 January 2020 that it is launching a review of the implementation of the changes to off-payroll working rules (commonly known as IR35) which extends responsibility for assessing the employment status of individuals to the private sector. The reforms were announced in the 2018 Budget and are currently due to come into effect on 6 April 2020.
The announcement states that the purpose of the review is to smooth the implementation of changes to IR35, and that this review will involve engaging with affected individuals and businesses, via a series of roundtables with stakeholders along with internal analysis. The government's review will also look at possible further steps for supporting businesses in assessing an individual's employment status. While the announcement may be taken as suggestive of a possible postponement to implementation, this has not been confirmed. Indeed, the announcement continues to refer to implementation taking place on the original implementation date.
We will continue to monitor developments in this area to keep clients informed, in particular following the conclusion of the review which is due by mid-February 2020. At present, the IR35 reforms are still due to come into effect on 6 April 2020 and it would be prudent for businesses to continue with their preparations on this basis – please feel free to contact any members of our team (see details below) if you think you may require advice on compliance in this area.
Previous tax e-bulletins on the IR35 reforms can be accessed using the links below:
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The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.