Chief treasury secretary Steve Barclay has announced that the IR35 tax reforms due to come into force on Monday 6 April will be delayed by one year.
Mr Barclay made his announcement in Parliament during the Budget debate which took place this evening (Tuesday 17 March). The move is part of a broad package of measures the Treasury has announced to protect the economy from the coronavirus outbreak.
Business, representative bodies and contractors have been urging the government for months to delay introducing the IR35 regime to the private sector. Despite this, only last week the Chancellor confirmed in the Budget that IR35 would go ahead as planned. But, now the government has had to act quickly in the wake of the economic distruption caused by the Coronavirus outbreak.
Hannah Clifford, a senior associate in the employment team says many contractors will be relieved - particularly as many will be facing cash flow problems in the wake of the Coronavirus epidemic:
"Giving more time to prepare for the changes means this news will be a welcome relief for businesses, agencies and off-payroll workers facing immediate challenges in the wake of COVID-19"