IR35 Delayed

The government has announced it is delaying the reforms to the off-payroll working rules (IR35) from 6 April 2020 to 6 April 2021.

This deferral has been announced in response to the ongoing spread of COVID-19, to help businesses and individuals deal with the economic impacts of the pandemic.
This is a deferral of the introduction of the reforms, not a cancellation.

Due to this delay we will be pausing the customer support and education programme that HMRC has been delivering to help customers get ready.
They will resume education and support activities at the appropriate time ahead of the reform in April 2021.  I am still awaiting some responses from Ministers in relation to IR35 issues that constituents and businesses raised with me and I will continue to pursue them.

For those who wish to continue to prepare, HMRC developed a wide range of guidance and resources on the issue which are available at:
www.gov.uk/guidance/understanding-off-payroll-working-ir35

Additionally HMRC is offering help to all businesses self-employed and individual in financial difficulty due to the Covid19 outbreak.
Any businesses who feel unable to pay an overdue tax bill now or in the future can contact their new dedicated helpline 0800 0159 559 for assistance.
HMRC will consider all cases on a 'Time to Pay' basis, offering additional time to pay when necessary.

This is in addition to a package of temporary, targeted measures to support public services, people and businesses through the disruption caused by Covid19.  This includes help for businesses with fewer than 250 employees, the cost of providing 2 weeks of COVID-19 related statutory sick pay per employee will be refunded by the government in full.  This will provide 2 million employers with up to £2 billion to cover the costs of large-scale sick leave.

A 12-month business rates holiday for all retail, hospitality and leisure businesses in England.  A small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.  This will be paid automatically by local authorities in April.  A further grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.

The Coronavirus Business Interruption Loan Scheme has also been launched to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance.
Additional support for liquidity amongst large firms, with a major new scheme being launched by the Bank of England to help them bridge Coronavirus disruption to their cash flows through loans.  These schemes have partial Government backing, to limit the strains on business owners.

Finally there are new legal powers in the Covid Bill will enable the government to offer whatever further financial support we think necessary to businesses.

Guidance is being reviewed on a regular basis so please keep an eye on www.gov.uk/coronavirus for more information.