IR35 – Postponed Legislation

Last week the Government announced plans to delay the change to IR35 legislation to the private sector for 12 months.  This change has been welcomed across the contractor market, especially for those campaigning for the complete abolishment of the change.

Given the lack of clarity around the change to legislation, with a confusing CEST tool and minimal support from HMRC, did it really have to take a global pandemic for the Government to delay the legislation?

Recruiters, businesses and contractors need to utilise this time to get their house in order to ready themselves for the change ahead, as come April 2021, HMRC will move to a strict enforcement of this legislation.

However, given the current COVID-19 pandemic, businesses can take advantage of this opportunity to retain contractors under their current terms or utilise contractors to support during this challenging period to maintain a sense of business as usual.

We are already seeing a rise in contractors set up to operate fully from home and provide businesses with full flexible solutions, from short term sickness cover to project solutions.  This could be a welcome trial for contractors to prove their ability to work self-sufficiently and manage work for a number of clients at once and therefore proving their ability to operate as a true limited company contractor.

If your business can utilise additional support no matter how short term or you’re a contractor keen to understand the tools you need to operate efficiently from your home office, then please do not hesitate to get in touch for more information.

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