Coronavirus Delays IR35 Reforms Until 2021

Article by Walker Hamill Großbritannien

Steve Barclay, Chief Treasury Secretary, has announced that the IR35 tax reform will now be delayed until 6th April 2021. Barclay explained that this is to help protect the economy after the Coronavirus continues to impact the UK. 

From the outset, IR35 received mixed reactions from both the recruitment industry and the implicated contractors. The motivation behind the reform is to tackle tax avoidance by targeting contractors who offer the same service as those who are employed by a company.

Before COVID-19, the government understood that these tax changes would affect hundreds of thousands of contractors’ income. They recognise that by going ahead with these changes right now, could ultimately be disastrous. Barclay did, however, go on to confirm that this is “a deferral, not a cancellation, and the government remains committed to reintroducing this policy”.

He also highlighted that this welcomed delay would “give private sector firms vital time to prepare for reform, which can only be a good thing for contractors. What matters now is that businesses use this time wisely.”

Here at Walker Hamill, we welcome the news and believe it will have a positive impact on our candidates, clients and ourselves. As a company, we now have more time to prepare for the changes. Moreover, end-users and suppliers will have time to adopt more streamlined and automated processes.

On the other hand, this does create some new challenges. For those suppliers and users who have understandably already taken action to deal with the expected commencement on 6th April 2020, it may not be a simple exercise to go back to their previous set-up.

With uncertain times ahead, our Temporary, Contract, Interim and Part Qualified division, alongside our internal Finance team, are committed to helping our clients and candidates prepare for the new April 2021 reform date. Our experienced team are able to offer career and CV advice, interview preparation, industry remunerations and more insight into the IR35 reforms. 

Over the coming weeks, our team is available for a call or video conference, to cater to the current climate. For more information, please contact Nikki Bowring, Director & Head of our Temporary, Contract, Interim and Part Qualified division on 02078394444 or by emailing