IR35 going ahead next April 2021 despite concerns

• Despite many lobbying the introduction of the extension of the IR35 reforms into the private sector, it remains due to take effect from April 2021.
• Last week, we saw a further attempt to delay its introduction, this time by MP David Davis who proposed that the extension to the private sector be postponed until 2023-24.
• However, on 19 May 2020 the Finance Bill 2020 was approved without division, or discussion of MP David Davis’ proposed amendment, by the House of Commons.
• Furthermore, the government tabled ‘New Clause 1 and New Schedule 1: Workers’ services provided through intermediaries’ for the Public Bill Committee of Finance Bill 2020.
• The new clause is accompanied by an Explanatory Note which both reflect the intention to implement  the reforms on 6 April 2021.

See further supporting documents for the Finance Bill 2020 here.

Aspire Comment

The extension of the off-payroll reforms to the private sector was due to be implemented on 6 April 2020 but were delayed when the coronavirus pandemic hit the UK. Government had previously heard of the concerns of those due to be affected by the extension, including a damning report from the Finance Bill Sub-Committee to further consider the implications on businesses.

It is discouraging that, despite knowing of the lack of preparation and now the lack of financial resources available to those who have been severely affected by the pandemic, government are pressing on.

Aspire are able to offer IR35 training to you and your staff to best prepare you for the changes your business will need to make in preparation of the reforms, as well as implementing processes and procedures and updating contractual documentation. If you would benefit from the training, or need any further support, call us today on 0121 445 6178 or email enquire@aspirepartnership.co.uk.