The Government has postponed the controversial reforms to the IR35 tax rules until April 2021 in view of the pressure from House of Lords as it attempts to alleviate burden on businesses and individuals amid the Covid-19 fallout.
Thus the new proposed rules will not be put in force from 6th April 2020 as was originally intended.
In view of the above, as a contractor using a Limited company, you (and not your end user client) are to decide whether your contract falls inside or outside IR35.
Though the Government has stated its intentions to legislate next year, contractors, clients and industry stakeholders welcome the valuable time granted by the tragic circumstances.
We at Tax-Link warmly welcome the announcement that the Government has delayed the damaging IR35 Off-Payroll Tax roll-out for a year.
If you have been issued a new contract which falls inside IR35 and under the new contract you will be paid through an Umbrella Company, please do not accept this and insist on working through your existing company as you have been doing so far. If the contract has been accepted, it should be possible to cancel this and a new contract issued in the name of your company.
A flexible and remote workforce is key to ensuring continuity for many businesses.