Last night (17th March 2020) the UK’s Chief Secretary to the Treasury, Steve Barclay, announced in the House of Commons that the government is postponing the implementation of the changes to the application of the off-payroll working tax rules to private sector clients (IR35) from 6 April 2020 to 6 April 2021 to ease pressure on businesses and individuals struggling with the COVID-19 crisis.

What this means for you

This means no change to your working arrangement is currently required and if operating as a Limited Company contractor, you can continue to do so until April 2021.

However, it’s important to note that this is not a cancellation of the changes and that the intention from HMRC is still there to press ahead with the changes once the COVID-19 crisis abates. The Chief Secretary reiterated that it was “a deferral, not a cancellation” and that “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”.

Please also note that some clients may still choose to not accept Limited Company contractors because they’ve already introduced restrictions in preparation for the changes. In that instance, you can still opt to be ahead of the curve and work PAYE or via an approved Umbrella Company like Quest Pay Solutions.