IPA welcomes postponement of reform to IR35 rules

IPA Finance Director David Clasen gives his view on the IR35 postponement.

The IPA has welcomed the Government’s decision to delay - until 6 April 2021 - the implementation of the reform to IR35 rules that govern off-payroll working rules in the private sector.

The reform, which was due to come into force next month, has been introduced to combat tax avoidance by workers supplying their services to clients via an intermediary, such as a limited company, who would otherwise be treated as employees for tax purposes.

Says David Clasen, Finance Director, IPA: "The IPA has been campaigning for better execution of this reform and, whilst we still have reservations about the details, in particular the operation of the CEST tool, we welcome this postponement."

Full details of the IPA’s concerns regarding the reform to IR35 rules are outlined in the IPA’s response to the HMRC consultation, submitted in June 2019.

View the Government’s announcement last night.

Last updated 02 June 2020