Amidst the uncertainty caused by the economic impact of covid-19, there has been a welcome reprieve for businesses grappling with the introduction of the off-payroll working reforms to the private sector.

Steve Barclay, Chief Secretary to the Treasury, revealed the postponement late in Tuesday evening’s House of Commons session. He stated “we will do whatever it takes to give the British people the tools to get through this challenge. I can also announce that the Government are postponing the reforms to the off-payroll working rules IR35 from April 2020 to 6 April 2021.”

“The Government will […] shortly table an additional resolution confirming that we will reintroduce the off-payroll working rules provisions by amending the Bill, with a commencement date of the 6 April 2021. This is a deferral in response to the ongoing spread of covid-19 to help businesses and individuals.”

This deferral will no doubt be welcome to businesses anxious about the immediate impact of covid-19. In the longer term the delay reopens the door to discussions over the implementation of this widely criticised legislation.

Should you have any questions regarding this announcement, please do not hesitate to speak to your contact at Barnes Roffe.