IR35 off-payroll delay announced by government

Written by Lee Colbran - 18 Mar 2020

With this news, businesses can safely engage with contractors for key project continuation in uncertain times.

As part of the response to the ongoing situation with Covid-19, the UK government has announced an eleventh-hour postponement to the implementation of the off-payroll tax within the private sector. The legislation will now be introduced in April 2021.

Adam Stafford, managing director at Fresh Egg said: “The pause in implementation now gives companies an additional 12 months to fully prepare for IR35. With the preparation we put in to support businesses and contractors, there is an adequate window where we can help with a smooth transition and provide our IR35 solution, which enables businesses to safely enjoy the benefits of working with contractors.”

We can help with urgent contractor placement

What this means for contractors

The delay is good news for contractors, with many facing an uncertain time with the introduction of the legislation and the unprecedented onset of Covid-19. Now at least, contractors (and businesses) do not have to worry about falling foul of new HMRC regulation come 6th April. This is a welcome pause by the government.

Dan Grim, head of talent services said: “The 12-month delay to IR35 is certainly good news in the short-term given the extraordinary circumstances we are facing. This change allows companies to quickly hire skilled contractors, who can execute projects, have their own equipment and are perfectly placed to work remotely.

“However, having been heavily involved in the transition of IR35, there is a lot of frustration from contractors; for many, it’s a case of too little too late, particularly for those who have lost their contracts, been forced to work through an umbrella company, or taken a permanent position. The impact on their lives has been significant.”

What this means for businesses

In short, this pause in the introduction of IR35 legislation will allow businesses to continue to use skilled contractors on vital projects. This could be good timing for many businesses who are facing recruitment challenges due to the ongoing situation with Covid-19.
With many workforces having now moved activity to full remote working, there are new challenges for teams that need to complete projects urgently. One such challenge is recruiting talent.

With many team members now working remotely and social distancing in place, the drive for organisations to fill permanent roles is on pause until the situation with improves. This is especially the case where interviews and start dates have been delayed due to the ongoing situation with coronavirus.

Contractors can now safely step-in to fulfill the shortfall in being able to hire

With the pause in legislation, businesses can safely place contractors to assist in the short-term, while long-term recruitment has been paused. If you are one of the many organisations that have an urgent need to complete time-sensitive projects, we can assist you finding short-term contractors.

With our network of vetted contractors, we have access to a flexible workforce that can be in position rapidly, using their own equipment and only contracted for the days they work. Here's how Fresh Egg can assist:

  • When hiring a remote contractor, our highly regarded team can assist you in making the right hire
  • You can speak with one of our technical experts to ensure you have the right level of skills and experience in the job description
  • We can source contractors from our extensive network
  • We will robustly vet and test the short-listed contractors from a technical perspective
  • Our technical experts can provide continued oversight on the work being delivered

We’re ready to help. Call us on 01903 285900 or email hello@freshegg.com.

See related IR35 Off-Payroll content

Mitigate the impact of IR35 changes

Tips on staying outside IR35 for contractors and companies post April 2020

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