IR35 – We thought this would happen
The changes relating to IR35 were going to cause significant disruption for many businesses and workers. These reforms, which have already been implemented for the public sector, would have forced many works operating through personal service companies to be treated as employees for tax purposes. The postponement was announced by the Chief Secretary to the Treasury, Steve Barclay, in the House of Commons on the 17 March.
The Government is still insisting that the changes will be implemented in April 2021.
If you were in a transition to an Umbrella Company/Permanent employment or some other means of a scheme: Our expectation is that given this news, most contractors will want to continue working via their limited company for the foreseeable future and will continue on this basis. – However please do feel free to contact us if you would like to discuss this further.
Remember – This does not change the entire scope of the legislation. At present it will revert back to as before: It is the workers responsibility to see if they are within the scope of IR35 once again as opposed to the client receiving the services. (Which was the proposed changes)