Good news for contractors as new IR35 rules delayed!
In an attempt to alleviate pressure on businesses and individuals amid the Covid-19 fallout, it was announced last night that the IR35 tax reforms would be pushed back by one year, less than a week after the controversial measures were confirmed in the Budget.
For many, the IR35 delay is a ray of light in the current crisis. The changes would have led to self- employed individuals operating through a limited company, therefore paying more tax under the legislation known as IR35. Andy Chamberlain, director of policy at IPSE (the Association of Independent Professionals and the Self-Employed) said “The Government has done the sensible thing by delaying the changes to IR35 in the private sector. It is right and responsible to delay the changes to IR35 for at least a year during the coronavirus crisis, to reduce the strain and income loss for self-employed businesses.”
What matters now is that businesses use this time wisely for reform. In our last article on IR35, we displayed a petition which had been signed by 43,000 people. In this petition they lay out their requests for the government to halt the IR35 changes, and to give a clear statement that any tax reforms will have no retrospective taxation on either individuals or corporations as this has created an unnecessary environment of great fear. Well… the halt has somewhat happened, so I guess that’s a bonus? We hope that the delay gives businesses time for reform, time to read over the wants of the people and create an environment that’s beneficial for contractors in the future.
We understand that there are many of you out there that have already lost out on business and had contracts terminated by employers in anticipation of this legislation. We are here to help. At Nordens, we are so much more than accounts and tax. We have to, and we will continue to provide our top-class service to clients new and old.
If you have any queries about how these changes may affect you, click the green button to book a free consultation with one of our specialists or contact your manager if you already a client or anyone of our team here at Nordens.