The CleverHub

A central source of accountancy related news, arcticles and reviews

Call 0800 756 9786 Call me back

The Off-Payroll (IR35) Reform Delayed Until April 2021

by | Mar 18, 2020 | IR35

The off-payroll reforms to IR35 in the private sector have now been delayed by 12 months due to the coronavirus pandemic.
The legislation will now be reintroduced in April 2021. This is a welcome decision in light of the worrying health and economic challenges we now face, but we must stress that it has been made clear that this is only a delay and not a cancellation.

What’s happening?

1. The changes will happen on April 6, 2021, not April 6, 2020, in the private sector.

2. Status Determination Statements done to date will have no legal status – these will need to be done on the contracts and working practices in place in April 2021.

3. HMRC does not intend to pay any attention to SDSs done to date when considering if a contractor is currently inside or outside (though we recommend waiting for some written confirmation of this).

4. Contractors who have been told not to use their PSC, or that they are ‘inside IR35’ on the new rules, should speak to their agencies (and possibly end-clients) to see what the situation is now.

5. Contractors using PSCs in the private sector should apply the ‘old IR35’ rules (Chapter 8) for the 20/21 tax year as they do today.

Contractors who have been told not to use their PSC, or that they are ‘inside’ on the new rules should speak to their agencies (and possibly end-clients) to see what the situation is now.

With the delay coming so late in the day, it is likely that many end-clients will have already set in motion new engagement practices that they are now unable or unwilling to restructure in the immediate future.

Needless to say, we at Clever Accounts will support contractors in any way possible through either our Umbrella engagement option or via our accountancy services.

Over the next few days, we will be making contact with all our contractors to discuss this matter further and determine how best to move forwards.
If you have any queries in the meantime, please do contact us.

IR35 - read more about it

Find out what changes are coming, how this could affect you and what we can do to help.

COVID-19

Information for contractors, freelancers and limited company on what help is out there

Our accounting packages

Limited Company

Used by thousands of limited companies and contractors, you get unlimited accounting support and advice, easy-to-use online accounting software all for a single fixed monthly fee. This package also includes our Flex solution to allow seamless switching between a limited company and Umbrella plus free insurance*

Growing Company

Our fully bespoke accounting service for limited companies that are growing or in need of additional services. This package includes a dedicated bookkeeper and payroll solutions for multiple employees together with fully pro-active support and advice and face-to-face meetings via video conferencing.  If you need that extra hands-on service, this is perfect for you.

Need an accountant?

Clever Accounts offers fixed-fee online accountancy support for contractors, freelancers and limited companies.

Dedicated accountants, online accounting software and 15 years expertise in the market makes us the perfect choice.

Find out more Request a call back

Z

Designed for contractors & limited companies

Z

Your own dedicated, experienced accountant

Z

Monthly fixed-fees - no surprise bills

Z

End-to-end IR35 support and guidance

Z

Year end accounts, payroll and VAT