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IR35 private sector reforms will not be going ahead in April 2019

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The government confirmed yesterday that they will not be introducing IR35 reforms into the private sector in April 2019.

They have however, expressed an intention to introduce IR35 reforms into the private sector in April 2020. They’ve suggested that these reforms will align IR35 rules in the private sector with those currently the public sector, but that these reforms will only apply to large and medium sized businesses.

Beyond this, detail on the proposed reforms is limited.

Although over the coming days and months there will be much speculation and conjecture throughout the industry on the reforms, it’s important to remember that the proposals will not be implemented for at least another 17 months.

Throughout this time the government will engage in consultations that will, along with pressure from industry lobbying, help shape the final legislation.

It’s probable that draft legislation will be produced in 9 months’ time and it’s at this point, that we’ll be better equipped to understand what the reforms will actually entail and their likely impact.

Effectively this means that it’s ‘business as usual’ for PSC/Ltd contractors operating in the private sector, until the government clarifies its position with detailed legislation, but we would advise you to bear the proposals in mind when tendering for contracts that will run beyond April 2020.

ADVANCE will keep you up to date on with any announcements or legislative changes regarding these reforms.

For any further information on the Budget announcements, please get in touch by emailing [email protected] or by calling us on 01244 564 564.

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