On 7 January 2020 the Chancellor, Sajid Javid, announced that the Government will carry out a review of the off-payroll reform, known as IR35, which is due to come in to affect in April 2020.
As part of the review, the Government will be working with stakeholders representative of those affected by the reform, including contactor groups and medium and large sized businesses via a series of roundtables. The aim of the review is to identify and determine if any further steps can be taken to ensure the smooth and successful implementation of the off-payroll reform. In addition to the review, the Government is expected to carry out internal analysis, including re-evaluation of the enhanced Check Employment Status for Tax (CEST) tool as well as revisiting public sector bodies’ experience of implementing the reform to the off-payroll working rules in 2017.
It is anticipated that the review will be concluded by mid-February with the view that the off-payrolling changes will still be implemented in April 2020, following the scheduled UK Budget announcement on 11 March 2020. Although it is doubtful that the reform will be scrapped, it is possible that the review will take longer than anticipated and potentially the date of implementation could be postponed. However, this is not a certainty. Therefore, it is important that businesses continue to prepare for the off-payroll changes to be implemented in April 2020, ensuring compliance with the changing legislation.
For any further information on IR35 or the ongoing review, please contact Charlotte Edwards (email@example.com) or your usual AAB contact.
By Charlotte Edwards, Senior Manager & Head of Global Employment Taxes at Anderson Anderson & Brown LLP.