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Government Postpones IR35 Amid COVID-19 Crisis


The government has postponed the implementation of reforms to IR35 tax rules in the private sector by one year in a bid to protect the economy against the coronavirus outbreak.

Speaking at yesterday’s Budget debate in the House of Commons, chief secretary to the Treasury Steve Barclay announced the reforms to IR35 off-payroll working rules would now come into effect on 6 April 2021.

Last month the Treasury confirmed it was to push ahead with changes to the rules, which would see every medium and large private sector business in the UK become responsible for setting the tax status of any contract worker they use from April 2020. Previously the rules had only applied to the public sector.

Chris Biggs commented,

“This postponement is welcomed and will give some respite to thousands of consultants and freelance professional service workers in regards to their own tax situation, but the COVID-19 crisis is causing significant stresses in short terms for self-employed workers. Furthermore, it may be worth asking how many businesses will reverse the considerable efforts they have made to become IR35 compliant to account for this postponement.

With daily updates from the government, there needs to be greater transparency from businesses and HMRC to ensure every skilled gig economy worker has a backup in place if they are unwell. Companies need to ensure that do not act rashly and protect their employed and contracted workforce to make sure that the professional services sector does not grind to a halt and we lose thousands of fantastic consultants over the course of the next quarter.”


Over the past 6 years, Rachel has been working specifically within the digital marketing space and has worked with some of the country’s top brands. During this time, Rachel was a key attribute to the success of our sister product, Recruitment Buzz, which has firmly established itself as one of the leading publications within the Recruitment sector. Drawing on her knowledge and experience, Rachel has developed a genuine understanding of how content can engage and compel an audience.

Having a passion for travel and culture, Rachel left her hometown of Cardiff to pursue studies and travel and after several years away, Rachel returned to Cardiff and firmly established herself within the development of Business News Wales. Rachel is now responsible for every aspect of web management, marketing and overall production of the Business News Wales brand.

Having learnt some invaluable skills within the marketing industry, Rachel is often called upon for her skills and knowledge of WordPress, HTML, email marketing software, Photoshop design and social media tools.


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