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Maw Comms news

IR35 delay – Howes Percival comments

The government has announced that the extension of IR35 to medium and large companies in the private sector is being postponed by a year, to 6 April 2021.

The IR35 tax rules are aimed at making sure that where a contractor provides their services through their own limited company and they would be treated as an employee for tax purposes if that intermediary were not used, that contractor is subject to broadly the same tax and National Insurance contributions as employees. The end user or client (in most cases) will be responsible for making the necessary deductions as well as carrying out the status determination in the first place.

Employment law expert, Caroline Illing comments, “This decision will be welcomed by employers and contractors especially in such challenging times. This now means that there is more time for businesses and contractors to fully review the arrangements they have in place and take action in good time before the changes come into force next year.”

For more information on Howes Percival’s employment law team visit: https://www.howespercival.com/services/employment-and-hr/

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For further information please contact:

Gordon or Liz at MAW Communications (www.mawcomms.co.uk) on 01603 505 845

Notes to editors:

Howes Percival has offices in Cambridge, Leicester, Manchester, Milton Keynes, Northampton and Norwich.  It has 50 partners and 169 lawyers in total.

The firm is recommended in The Legal 500 – the authoritative guide to the UK’s leading law firms.  In the 2020 guide, no fewer than 12 different departments achieved the guide’s highest possible ranking (Tier 1): Corporate and Commercial; Dispute Resolution – Commercial Litigation; Dispute Resolution – Debt Recovery; Finance – Insolvency and Corporate Recovery; Human Resources – Employment Law; Human Resources – Health and Safety; Private Client – Agriculture and Estates; Private Client – Tax, Trusts and Probate; Real Estate – Commercial Property; Real Estate – Property litigation; Real Estate – Environment & Planning; Technology, Media & Telecoms – Intellectual Property.