Yesterday afternoon the government passed the 2019/2020 Finance Bill
Yesterday afternoon the government passed the 2019/2020 Finance Bill.
Despite an amendment tabled by David Davis MP to delay the rollout of IR35 reforms to the Private Sector until the 2023/2024 tax year – which saw various lobbying groups, individuals and industry experts across the sector hoping this may have got some traction – the Bill was still passed. This will no doubt come as a disappointment to many hoping for a further postponement..
So what does this mean for IR35 in the Private Sector? As it stands, the deferred off-payroll reforms to the Private Sector will be introduced next April.
Jesse Norman MP (Financial Secretary to the Treasury) announced plans to conduct a review 6 months after its introduction on the 6thApril 2021.
In the Public Sector, after the introduction of similar IR35 reforms in 2017, following a review carried out by IFF Research in May 2018, HMRC by-in-large considered the reforms to be successful.
With the 12 month deferral of the 2020 Private Sector, many commentators and observers are of the opinion that HMRC will view this period as a ‘soft landing’, and that come the 06 April 2021, HMRC may take a much harder line in its approach to enforcing the changes.
Businesses and contractors alike should use this time now to continue to prepare ahead of April 2021. It will be upon us before you know it.
For more information or advice on what you can do to prepare, drop us an email to firstname.lastname@example.org we’d love to hear from you.