Contractors hope no mention of private sector IR35 in Spring Statement means delay for intended reforms

In recent days, rumours have emerged that the Government’s intended extension of new IR35 rules to the private sector could be delayed until at least 2020, after Chancellor Philip Hammond failed to address the issue in his Spring Statement announcements on Tuesday 13 March.

Previously, the contracting community was expecting the Chancellor to confirm that an extension of the new off-payroll rules to the private sector would be introduced in April next year.

However, the Chancellor’s Spring Statement contained no updates on the proposals.

Furthermore, an excerpt from policy papers delivered on the day in relation to the new Budget timetable suggests that the Government is effectively ‘running out of time’ to legislate the intended change in time for April 2019.

Commentators have noted that realistically, a consultation needs to be launched within a matter of weeks in order to guarantee enough time for full consideration of the reforms.

Meanwhile, contractors in the private sector are hopeful that the news will see any potential legislative changes delayed until at least 2020.

In addition, commentators have said the Spring Statement’s omission of an update might be indicative that lobbying efforts spearheaded by campaigners and contracting bodies might be having some weight on the Government’s policy-making decisions.

A petition recently launched against an extension of the new off-payroll rules to the private sector has so far gained more than 15,000 signatures. This petition can be accessed here.

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