Yesterday evening in the House of Commons, Steve Barclay, Chief Secretary to the Treasury, announced that there is to be a shock delay to the controversial off-payroll IR35 reforms within the private sector. The reforms will now be delayed by at least 12 months and the roll out will not now take place until April 2021. This followed heavy pressure from lobbying bodies and the House of Lords and in light of the Covid-19emergency the government took the bold and much welcomed decision to pause the implementation of the upcoming legislation which was due to come into force in just a few short weeks.
What does this mean for contractors and freelancers?
The delay of the IR35 reforms means that there will be no changes to the way the IR35 rules operate within the private sector for at least the next 12 months. As has been the case to date, contractors and freelancers will therefore remain responsible for determining their own IR35 status and they can continue to operate contracts through their limited companies as usual.
If you have recently been instructed to work inside of IR35, through an umbrella company, or to take on a PAYE role, you may want to check the situation with your client.
PaperRocket Accounting provide accounting and tax services to professional contractors, freelancers, and small businesses working in the UK.
We offer our clients a flexible choice of fixed fee monthly packages which cover all of their accounting and tax needs (so no hidden costs or surprise bills!). All of our accounting packages include a monthly subscription for a cloud accounting software subscription provided by the awarding winning FreeAgent.
Each of our clients is given their own dedicated qualified accountant with unlimited access in person, telephone, or by email.
We pride ourselves on our client satisfaction and customer service and were awarded ‘Best Contractor Accountancy’ firm 2020 in The Contracting Awards and ‘Welwyn Hatfield Business of the Year 2019’ in the SME Hertfordshire awards.
To find out how we can help you please get in touch now.