Commenting on the Finance Bill published today, Susan Ball, employer solutions partner at RSMUK said:
‘All references to the IR35 reforms that were due to be introduced in April 2020 have now been expunged from the newly published Finance Bill.
‘The policy will be introduced on 6 April 2021, representing a 12-month delay. 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.
‘Due to this delay, HMRC will be pausing the customer support and education programme that it has been delivering to help customers get ready. HMRC will resume education and support activities at the appropriate time ahead of the reform in April 2021.
‘The deferral means that the current off-payroll working rules in the public sector, introduced in 2017 will continue to operate as they do now. Public authorities will not need to implement the changes on status determination statements or implement status disagreement processes until April 2021. Customers can refer to existing guidance on the current rules for public authorities for more information.
‘Those businesses needing to ensure that they have the processes in place to meet the new compliance requirements now due in April 2021 should refer to the draft HMRC guidance on its website and the latest draft of the legislation to be found in section 7 of the Budget Resolutions Book published on 11 March.’