Kate Brooks
Partner, Solicitor & Head of Employment/HR Services
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Date Published:19 Mar 2020 Last Updated:02 Aug 2021

IR35 delay due to COVID 19

Employment Law Advice

HMRC have announced that there will be a delay to the IR35, off-payroll working rule changes due to come in on 6th April 2020. The change will now be delayed until April 2021.

The changes were to mean that every large and medium private sector would have to determine the tax status of contractors using limited companies. This already applies to public sector.

Regardless of the delay in the legislation, employers are still well advised to be aware of the reality of the tax and employment status of their self employed contracts. The reason for this is that it is still possible for HMRC to investigate the reality. It is also still possible for a self employed person to allege they are employed in reality and enjoy certain employment rights.

In these tough times, if companies are considering letting contractors go that have worked regularly for over 2 years, they should consider whether there is a risk of a threatened employment tribunal claim.

Further information of employment status, employment law or HR, or contracts, please contact Kate Brooks on 01202 057754 or kate.brooks@ellisjones.co.uk