- The off-payroll reforms will now be postponed until 6 April 2021.
- Aspire received personal correspondence from HMRC yesterday evening (17 March at 21:04) confirming the delay.
- This is due to the immense business pressures of COVID-19. A quote directly from the HMRC email is;
“This is part of additional support for businesses and individuals to deal with the economic impacts of Covid-19. This means that the different rules that exist for inside and outside the pubic sector will continue to apply initial 6 April 2021.”
- This announcement has come just less than 3 weeks before the scheduled implementation day of 6 April 2020 and just 6 days after the 2020 Budget confirming that the reforms would go ahead.
- Government confirm that this is “a deferral of the introduction of the reforms, not a cancellation. The Government remains committed to introducing this policy...”
Aspire Comment
Although the delay will be warmly welcomed by many in the sector, it will be extremely frustrating to the businesses that have spent a great deal of time, money and resources preparing for the changes this year.
It is encouraging to see that the Government are taking steps to help support businesses through COVID-19. Nevertheless, Government were aware of the huge lack of preparation and understanding in the industry and, as confirmed in the recent Budget, were happy to proceed.
The additional year will now allow for all businesses in the private sector to adequately prepare and make changes to processes and procedures. It is imperative that you understand your obligations as the client, Personal Service Company or any other entity in the supply chain.
Aspire Business Partnership ("Aspire") provide WK1 with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. WK1 engage Aspire on a retained basis through which Aspire provide WK1 with advice on an ad-hoc basis.
https://www.aspirepartnership.co.uk/News/3402/the-good-work-plan-1-month-to-go-top-10-tips
