IR35 changes to go ahead in 2021
The off-payroll tax (IR35) changes look set to go ahead in 2021, despite a last-ditch attempt for a longer delay. This week in the House of Commons, Conservative backbench MP David Davis tried to amend the 2019-2021 finance bill, proposing that the private sector rollout be postponed until the tax year 2023-24. It is thought that, had the extended delay proposed in Davis’ amendment been approved, it would have been used to press the Government into further reviewing and maybe reversing the IR35 changes. However, the amendment failed to gain the support of both the Government or the Labour opposition, which, to all intents and purposes, rendered it defunct.
The Chief Secretary for the Treasury, Jesse Norman MP, pushed back on calls for a further review, ahead of the changes being implemented. He stated that "there had been a review in recent months” and that the Government would be pressing ahead. There was, however, a commitment from the minister, revealing that a review of the changes will take place six months after their introduction next year.
As with many in the construction industry, The Guild had planned and was ready for implementation in April this year. The delay due to the Covid-19 pandemic will be used by The Guild to work closely with clients to further prepare their businesses for the changes.
Chris Methley from The Guild said, “At this moment the Government seem intent to press ahead in April 2021. We have already fully tested our systems and working processes in order to deal with any impact on our business or that of our clients. We will continue to build on the work we have already done with our clients and prepare for a 2021 implementation.”
Should you wish to discuss any aspect of the IR35 changes and the impact on your business, please do not hesitate to contact us.