The government has announced that the roll-out of IR35 to medium and large private-sector companies has been postponed by a year. The new deadline is 6 April 2021. that the roll-out of IR35 to medium and large private-sector companies has been postponed by a year.
The new deadline is 6 April 2021.
IR35 would have required all medium and large companies to assess whether or not any contractors currently working through an intermediary were deemed employed for tax purposes. PAYE and National Insurance Contributions would have needed to be deducted accordingly where applicable.
Given other staffing issues that may be arising in light of COVID-19, this delay is likely to be a relief to many businesses. However companies need to be mindful that where they are directly contracting with consultants (and not through intermediaries) nothing has changed and they should already be determining the correct tax and employment status of those individuals. If we can assist with any queries about employment or tax status please do not hesitate to contact us.