Those affected by the changes to the off payroll working rules (IR35) in the private sector woke up to some very welcome news yesterday morning.
Following a call from the House of Lords that the changes should be delayed for a further 12 months while the country deals with the Coronavirus outbreak, the Chief Secretary to the Treasury announced that there will indeed be a delay.
The changes were set to massively disrupt the freelancer market at a time when the global pandemic is already set to make working lives very difficult for these workers who are a vital part of the British economy.
However with a lot of large companies having already made blanket decisions to move workers onto payroll or forcing them into umbrella companies, it is to be hoped that this announcement has not come too late.
It is now up to these large and medium-sized businesses to use this announcement wisely, and hopefully many will permit their freelancers to continue working under current arrangements while we ride out the health crisis. This will also then give these individuals much more time to prepare themselves for what looks set to be a life without their own limited company, now from 6 April 2021.
We are recommending to all our affected freelancer clients that they approach their customers to check whether, given this announcement, they are able to continue under their current working arrangements for the time being.
At Randall & Payne we are of course continuing to monitor developments in this important area, so please contact James Geary if you need any help or support around IR35 on firstname.lastname@example.org or 01242 776000.