The UK Government has announced that the changes to IR35 in the private sector which were due to come into force on 6 April 2020 will now be delayed until 6 April 2021, as part of the emergency measures put in place to help businesses in light of the coronavirus pandemic.
The provisions were to impose new duties on companies engaging with contractors working through personal service companies, including a requirement to make status determinations and to deduct tax and NICs if they considered a ‘disguised employment’ relationship was in place.
The Government’s decision means that the responsibility for accounting for tax and NICs in relation to such arrangements will currently remain with the contractor’s company, and the measures will give businesses more time to adjust to the new requirements.
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