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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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The Government IR35 review is 'recklessly inadequate', according to freelancer group, IPSE.
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ITV's This Morning presenter, Eamonn Holmes, has lost an IR35 tax tribunal.
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Nearly a third of freelancers are planning to stop contracting in the UK because the changes to IR35 due in the private sector in April, according to research by freelancer group IPSE.
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The Government has changed the time period for the new IR35 'off-payroll' rules so that they will now only apply to payments made for services provided on or after April 6 2020. This has effectively removed the 'retrospective' nature of the proposed changed.
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Contractors are being urged to join a protest in Parliament against the changes to IR35 self-employed tax.
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