Government announces delay to the extension of IR35 to the private sector
The Government has announced that the extension of IR35 to medium and large companies in the private sector is being postponed until 6 April 2021.
Changes planned for April 2020 to the IR35 tax rules would have meant that private sector employers who use individual contractors (who work through an intermediary - usually the contractor’s own limited company, known as a personal service company) would have become responsible for assessing the contractor’s tax status and started to deduct tax and National Insurance Contributions via PAYE.
The rolling out of the IR35 rules to the private sector will now not be implemented until April 2021. The current rules will remain in place until then meaning that it is the contractor’s responsibility to self-assess their tax status.