IR35 Update

18 March 2020

The UK Government have announced a last minute postponement to the implementation of the Off-Payroll Tax to the private sector in light of the recent Covid-19 outbreak. They have indicated that this is a deferral and not a cancellation. However, it undoubtedly offers an opportunity to further lobby government on this matter.

This is potentially good news for contractors deemed “inside-IR35” and facing a loss of work due to the virus as a result of being forced into “zero rights employment”. However, it remains to be seen how fee payers will react to the about-turn – will they allow contractors already advised as being “inside-IR35” to revert back to working through their companies? Or will they continue with the implementation regardless?

Our initial advice is that you need to contact your end client or your agency to verify whether or not you are going to be able to revert back to working through your limited company in light of this news. Thereafter:

If you have commenced the process of striking off your company, please contact us as soon as possible as it is usually possible to cancel this process.

If your company has already been struck off and you need to set up a new company, please contact us as soon as possible. We will incorporate a new company for you and register it for all taxes FREE of charge.

You do not need to do anything if you have been deemed “outside-IR35” or you have not commenced the process of striking off your company

Please be aware that we are not undertaking any face to face meetings due to the virus, though all of our staff are working remotely and we do not envisage any interruption to service as a result.