In the UK Government’s latest Budget, delivered on 11 March 2020, it was announced that the changes to the off-payroll working rules (also known as IR35) previously announced at Budget 2018 would apply to the private sector from 6 April 2020. The rules require businesses that use the services of individuals in the UK that are provided through an intermediary to determine whether there is, in fact, a deemed employment relationship and, if so, to deduct income tax and National Insurance contributions accordingly. Following the rapidly changing developments caused by the outbreak of Covid-19, the UK Government announced on 17 March 2020 that the implementation of the new off-payroll working rules will now be deferred by a year, until 6 April 2021. A statement from Steve Barclay, chief secretary to the Treasury, confirmed: “This is a deferral in response to the ongoing spread of Covid-19, to help businesses and individuals. This is a deferral, not a cancellation, and the government remains committed to reintroducing this policy.”
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