On Tuesday 17 March 2020, the Chief Secretary to the Treasury, Steve Barclay, announced in the “noisy” House of Commons, that the Government is postponing the reforms to the off-payroll working rules from 6 April 2020 to 6 April 2021.
The Government will shortly table an additional resolution confirming that they will reintroduce the off-payroll working provisions by amending the Finance Bill which will be published on Thursday 19 March, with a commencement date of 6 April 2021.
The Chief Secretary to the Treasury explained that the Government remains committed to introduce the policy and this is a deferral, not a cancellation.
Whilst of course the unexpected spread of Covid-19 is unwelcome, the postponement of the reforms will be welcomed by many businesses in the UK which are affected by the off-payroll changes, as it allows them sufficient time to prepare.
We recommend those affected by the changes use this time efficiently to get their internal processes up to speed to deal with the changes. Please see our off-payroll working article, where it explains what the changes mean for your business.
Be ahead of the game
We can help businesses affected by the off-payroll working changes and use the postponement to work together and implement revised strategies for the new compliance environment. Please contact us to speak to a member of the tax team.