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Extension of the IR35

In the wake of the international pandemic of COVID-19, the government have now announced that the extension of the IR35 off payroll tax rules to medium and large companies in the private sector is being postponed by a year, to April 2021.

The IR35 tax rules aim to ensure that contractors who provide their services to an end user via their own limited companies are taxed in the same way as an employee, if they would be considered to be an employee of the end user if they were providing the service direct. The reform would have seen the liability for assessing this, and in some cases for making the PAYE deductions, move from the intermediary to the end user.

The postponement of this reform is aimed to relieve additional pressures on businesses and individuals during this difficult time.

For more advice in relation to IR35, the impact of COVID-19 in the workplace, or any other employment queries, please contact Su Apps.

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