Delayed budget likely to cause IR35 delay
09 December 2019
Prime minister, Boris Johnson, has indicated in plans for the first 100 days of his new administration (if the Conservatives win in this week’s general election), that a budget will not be held until February, with priority being given to the completion of Brexit on 31 January 2020. The extent of this delay means that the restricted time to debate all aspects of the Finance Bill makes it increasingly likely that some aspects of the bill may be delayed. This could potentially include the amendments to IR35 which are due to come into effect on 6 April 2020.
IR35 has recently become a growing concern in Parliament, with parties promising that this will be one of many priorities should they come into power on 12 December 2019. All of the leading parties have suggested that they will review the IR35 tax reforms as soon as the election is over.
Chancellor, Sajid Javid, recently stated that the Conservative government will continue to support the self-employed, therefore highlighting the necessity to review the draft legislation before it is applied to the private sector.
The Labour Party have also published their intentions, suggesting that the extension to the off-payroll working rules is inappropriate and unfair on the self-employed.
Aspire Comment
Last year, there was a 3.5-month period between the budget, which took place on 29 October 2018, and the Finance Bill reaching Royal Assent on 12 February 2019. This timescale demonstrates the difficulty that will be encountered in trying to meet the current implementation date of April 2020. We are still awaiting confirmation as to when, what is being called a “tax give-away budget” will take place.
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