IR35 Pulled Out Of Finance Bill Until April 2021

[CheeseSlice]

One of the agents I know has literally just posted on Linkedin about this and will no doubt be tapping up clientcos as of tomorrow.

IR35 reforms to be delayed for a year due to coronavirus

[northernladuk]

Phew, I was just about to sign an inside role. I hope verbal agreement doesn't count :-)

Do we have a term to handle those 'tractors' who went perm recently?

Ir35 hasn't gone away. It's very likely to be still inside.

[dingdong]

I don't think anyone should get too excited

The way the economy is going at the moment there will be mass culls of contractors soon anyway!

[fiisch]

Outrageous. Fail to see how this helps anyone given the damage has already been done...

All I see is prolonged uncertainty for contractors and more months of in/out shenanigans.

I guess it's intended to make life easier for businesses to employ temporary workers to help with the clean-up after Covid-19, but it seems very very late in the day for such an announcement...

[rambaugh]

A clear admittance that a freelance workforce has significant benefit to the uk economy!

[abz2020]

With the C-virus situation I was 100% sure HMRC will retro hit all they can immediately to fund the economy in meltdown.

Now this HMRC move means they have realized the total tax collected by inside contractors minus the tax loss from contractors that walked away will be much less than the corp tax collected from LTDs.

I also think the big clients will not reconsider no PSCs rules, but these are desperate times. They just might need the flexible workforce.

[simes]

A clear admittance that a freelance workforce has significant benefit to the uk economy!

Yup, yes, and hell yeh.

However, let's see if the clients adopt. I have no idea what they will have been up to get 'here', but now they need to undo and let a few through...

Will they?

[Swiftly]

I have an inside determination (due to one single factor around substitution), but my client are still allowing PSCs to operate.

I got the determination in January, and most contractors were going to make the switch to use umbrellas from April 2020 - so what difference is it if I continued outside Feb 2020 - Apr 2020, compared to continuing outside Feb 2020 - Apr 2021?

[northernladuk]

I have an inside determination (due to one single factor around substitution), but my client are still allowing PSCs to operate.

I got the determination in January, and most contractors were going to make the switch to use umbrellas from April 2020 - so what difference is it if I continued outside Feb 2020 - Apr 2020, compared to continuing outside Feb 2020 - Apr 2021?

I think you've made a mistake in your post there.

But you've got a determination. You are inside and have been all along. The longer you stay outside the bigger your tax bill when this does land.

[saptastic]

Boom

Government in shock delay to private sector IR35 reform, thanks to peers and covid-19