The IR35 were first introduced in April 2000, to stop workers from classifying themselves as freelance contractors in order to pay less tax.

As part of the government’s response to the coronavirus outbreak, the rollout of changes to the private sector off-payroll has been delayed by 12 months due to the growing business uncertainty surrounding this pandemic.

Chief secretary to the Treasury Steve Barclay announced that this was “not a cancellation and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company pay broadly the same tax as those employed directly”

The legislation is now expected to take effect on 6 April 2021, rather than 6 April 2020. Meanwhile, businesses are urged to make the most of this delay to fully prepare their workforces and ensuring they are ready for when IR35 rules take place in 2021.