IR35 changes delayed until 2020

IR35 changes delayed until 2020

Nov 14, 2018

The Autumn Budget on October 30th provided clarity to private sector contractors on the issue of off-payroll (IR35) rules.

The Chancellor stated that the new rules will come into force in April 2020 and will apply to large organisations only. However, no details of which organisations will qualify for exemption have yet been released.

Plans to change off-payroll rules in the private sector followed the introduction in April last year of new rules for public sector contractors who worked through their own personal service companies (PSCs).

The new rules meant that responsibility for establishing IR35 status shifted from the worker and their PSC to their engager. As a consequence, the engaging organisation now has to deduct PAYE from the payment to the PSC and make the employer’s NIC on that payment.

The Government announced its plan to introduce these rules into the private sector and launched a formal consultation exercise earlier this year.  Now, the Budget has provided clarity, with the Chancellor Philip Hammond confirming that the new rules will be introduced, but not until April 2020.

“If you are a contractor in the private sector, or if your organisation engages workers through PSCs, you will now need to review your position. It’s important to understand how you will be affected so that you can mitigate any potential impacts.”
Paul McDonnell, Sales Director

The news received a mixed response from the FCSA which highlighted concerns about the ability of large businesses to prepare for the change, and the possibility that it could result in a proliferation of non-compliant tax avoidance schemes.’  Find out more here.   

Suggested Reads

February Offers From Crest Plus Advantage

Feb 14, 2024 | News

Explore the latest offers from Crest Plus Advantage.

How (And Why) To Choose A Good Umbrella

Jan 23, 2024 | Crest Plus News

As a recruitment business you’ll want to direct your contractors to an umbrella or CIS payments provider who will provide the best advice, support and compliant services. The UK is…

A to Z Insurance – Introducing Our New Crest Plus Advantage Partner

Dec 21, 2023 | Contracting

We’re delighted to announce that our rewards scheme for contractors, Crest Plus Advantage, now includes travel insurance. A new partnership with A to Z Insurance means Crest Plus contractors can…