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Freelancers and contractors pinpoint IR35 reform as the biggest concern and greatest threat to their businesses despite COVID-19 threat and ongoing Brexit uncertainty.
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Following on from industry objections, HMRC has now issued a statement regarding its intended application of the new IR35 Off Payroll Rules set to apply from April 2021.
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The delay to the private sector IR35 roll-out has encouraged more staffing firms and employers to ‘get it right this time around’, with recruiters reporting that over a third of clients (35 per cent) were making a U-turn on non-PSC decisions.
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HMRC has won an appeal in an IR35 dispute with a high profile presenter.
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The Government has been accused of having its head buried in the sand, as it 'all but ignored' the recommendations from the House of Lords investigation into changes to the off-payroll working rules (IR35 reform).
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MPs have voted against a move that would have delayed the controversial changes to IR35 in the private sector for a further two years.
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No changes are expected to the proposals for the new IR35 rules in the private sector, as it continues its passage through the House of Commons.
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The Government has pushed through the Finance Bill, meaning an amendment to delay the implementation of the controversial IR35 private sector rules has fallen.
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The majority of contractors who had been assessed as inside IR35 by their private sector client plan to revert back to working outside the scope of the legislation, as a result of the recent delay to IR35 reform.
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The Government has delayed the changes to IR35 in the private sector for a year in the wake of the Corona Virus crisis.
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