Delay to IR35 reforms: FAQs

Rachel Reeves

Planned changes to IR35 (or the ‘off-payroll working rules’) in the private sector will be delayed until 6 April 2021, the Government has announced, to relieve pressure in the wake of the Covid-19 pandemic. This will be welcome news for clients (engaging contractors via personal service companies or ‘PSCs’), agencies and contractors who are not yet ready.  It does, however, raise questions for those who have changed their contractual arrangements and processes in anticipation of the changes taking effect next week.

Here are answers to some initial questions that you might have about the impact of the delay.