The IR35 tax reforms that were introduced at the Budget announcement, to tighten regulations on tax avoidance, will not go ahead in April.
IR35 tax reforms specifically target contractors who are, in practice, providing the service of an employee – but are not technically classed as one.
Therefore, they are avoiding tax that employees would normally have to pay.
A Deferral, Not A Cancellation
The IR35 tax reforms have been controversial, and have received mixed feedback.
The Chief treasury secretary announced that the decision to delay was a ‘deferral, not a cancellation’.
This clarification is important, as many have pushed for the legislation to be abolished. The government says that they remain ‘committed to reintroducing this policy.’
This delay will give businesses more time to plan for the reform in April 2021.
Less Stress For All
Given the many changes that are presented by coronavirus, the government wanted to make sure that they are not introducing new tax changes.
The last thing they want to do is add to the concerns and worry of workers.
This delay though, will act as an opportunity to try and overthrow the policy altogether.
It’s likely that many people who have been protesting against the introduction of the IR35 tax reforms, will continue their protests for the next 12 months.
Daily Updates On Economic Impact
Boris Johnson will be delivering daily updates on the development of coronavirus and its impact on the UK economy.
If more problems arise, the government will do ‘whatever it takes’ to ensure that the economy and jobs are protected.
We’ll be keeping business owners in the loop with our regular blogs that will offer highlights of all of the announcements.
We try to write our blogs in a way that the average business owner can understand, so you know what will happen with your business!
Be sure to check back on our social media pages for more information.
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