IR35 and some changes

The planned extension of the new off-payroll rules to the private sector will be included in a review into how the new government can provide better support to the self-employed.

The pre-election admission by Chancellor Sajid Javid increases the prospect of the controversial tax measure, which was contained in Finance Bill 2019, being delayed.

“In our manifesto, we promise a review of how we can further help the self-employed,” Javid told Money Box on BBC Radio 4 in the run-up to last month’s general election.

“But one thing in particular I want to look at again are the proposed changes to IR35.”

When pressed by host Paul Lewis as to whether the extension of the rules to the private sector may be put off, Javid stopped short of committing to a delay.

“I don’t want to pre-empt the review,” added Javid. “But it makes sense to include the IR35 changes in that review.”

As things stand, medium and large private companies will be responsible for determining whether the rules apply to contractors they engage from 6 April 2020.

However, Finance Bill 2019 has yet to receive royal assent and the new government faces a race against time to either rush that through parliament or submit a revised version.

Javid is expected to deliver his first Budget speech next month, around three months on from the cancellation of Budget 2019.

Talk to us about the IR35 rules.