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Coronavirus delays UK Contractor IR35 reforms by a year

Due to the Coronavirus Pandemic the Government have delayed the new rules which had been due to come into force next month

The government has postponed the introduction of the IR35 tax reforms until next April.

The rules, first implemented in 2000, aim to stop employees registering themselves as freelance contractors in order to pay less tax.

To improve compliance, the government in 2017 made public sector organisations responsible for determining employment status.

But last night Steve Barclay, chief secretary to the Treasury, told MPs in the House of Commons: “This is a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals.”

Steve Barclay added: “This is not a cancellation and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company pay broadly the same tax as those employed directly.”

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