IR35 – Postponed because of Coronavirus

The government has postponed the controversial reforms to the IR35 tax rules until 2021 – in an attempt to ease pressure on businesses and individuals amid the fallout from Covid-19.

The change would have affected drivers working for agencies or claiming they are self employed. A number of measures, previously reported by RoadwayLive (link) would have required both drivers and employers to prove that workers were genuinely self employed through owning their own vehicle, having their own ‘O’ license or a number of other key tests. Failing to obey the new ruling could have resulted in substantial penalties both for companies and individuals.

Last month, the Treasury confirmed it was to push ahead with changes to the rules – which previously only applied to the public sector – but which would have had a big impact on the logistics sector.

Steve Barclay, Chief secretary to the Treasury, has confirmed the changes would now be postponed until April 6th 2021 in the light of the Coronavirus outbreak. He added this was a deferral not a cancellation and the Government “remains committed to reintroducing this policy.”