Thorn Baker Construction IR35 Reforms: Good news - Delayed until 2021


IR35 Reforms: Good news - Delayed until 2021

Legislation & Regulation

Paul Jackman Thorn Baker Group CEOIn these unprecedented times, the spread of Covid-19 has prompted the Government to postpone the reforms to the Off-Payroll Rules (IR35) which were due to come into effect from April.

Paul Jackman: Thorn Baker Group CEO

Speaking last night in the Commons Budget debate, Chief treasury secretary Steve Barclay announced the reforms which effectively clamp down on disguised employment would be pushed back by one April 2021

Whilst the majority of our clients and impacted workers had already prepared for the changes, they have proved unpopular and onerous for many to implement.

The IR35 rules came into effect back in 2000 and the key part of the reform was that clients would now decide if a role was inside or outside IR35. HMRC estimated that as many as 9 out of 10 roles were incorrectly determined to be outside IR35.  That decision will now remain with the worker (contractor) for another 12 months.

Thorn Baker welcome this decision as we have several other legislative changes to comply with from April including the provision of Key Information Documents and Written Statements of particulars to our workers.

We’re very much operating as usual at the moment in our desire to keep workers working so please do get in touch if you want to discuss how we can help you.

If you’d like to know more about IR35 check out the previous blog here