IR35 Reform: Finance Bill Includes Off-payroll Working Rules, Ready For April 2021

On 18 May 2020, the government proposed amendments to the Finance Bill 2020 which bring the planned reform of off-payroll working in the private sector firmly back on the agenda. The government's move indicates that the reform is likely to take effect in April 2021, one year later than originally planned. The reforms were originally due to come into force on 6 April 2020, but were delayed due to the economic impact of the coronavirus pandemic. A proposed delay until the 2023-24 tax year failed to gain support in parliament.

The off-payroll working rules, known as IR35, were introduced in 2000 to ensure that someone working like an employee, but through a company, pays similar taxes to other employees. The reforms are designed to tackle perceived non-compliance with off-payroll working rules by shifting the responsibility for determining the tax status of contractors to medium and large organisations in the private sector who are using their services. Similar rules