Controversial rules to make end clients responsible for the employment status of their contractors were introduced into the public sector a year ago.
The Government had strongly indicated that it intended to replicate the process in the private sector. Despite fierce opposition from freelancer groups during a consultation process this summer.
In recent weeks, stories have been trialled preparing the sector to expect the worst in the Budget.
And the worst wasn't quite as bad as many feared.
Chancellor Phillip Hammond said: "The off payroll working rules - known as IR35 – are designed to ensure fairness so that individuals working side by side in a similar role for the same employer pay the same employment taxes.
"Last year, we changed the way these rules are enforced in the Public Sector.
"But widespread non-compliance also exists in the private sector.
"So following our consultation, we will now apply the same changes to private sector organisations as well.
"But after listening carefully to representations made during the consultation, we will delay these changes until April 2020 and we will only apply them to large and medium-sized businesses."
From April 2020, businesses will become responsible for assessing an individual’s employment status and determining whether the rules apply in order to 'increase compliance with existing off-payroll working rules (IR35) in the private sector'. It will not apply to the smallest 1.5 million businesses.
Immediately after the Budget, the Treasury released a document explaining the change and how the Government is responding to the consultation on off-payroll working rules in the private sector in further detail.
See: Budget 2018: Increasing compliance with the off-payroll working rules in the private sector (“IR35”).
For more information about the controversial IR35 tests and rules; and other aspects of IR35, see Shout99's News on IR35 section.
For more Budget news, see Shout99's Political News section
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Susie Hughes © Shout99 2018