Conservative MPs write to Chancellor urging him to extend IR35 reforms deadline
20 December 2019
John Redwood and Andrew Bowie have both written to the Chancellor, Sajid Javid, encouraging him to either delay the implementation of the reforms to IR35 after the current 6 April 2020 deadline or to completely suspend them until a full review has been conducted.
Both are Conservative MPs and feel that a review should be undertaken immediately prior to the implementation of the new rules. John Redwood is the MP for Wokingham and in the letter he submitted, he explained that many of his constituents were worried about the potential effect of the changes to IR35, prior to and during the general election. He explained how the self-employed are crucial to our prosperity and how we should be taking steps to support them. Failure to do this could lead to contractors providing their services elsewhere, potentially abroad, which is a real possibility due to remote working and technological developments. He closed his letter by stating:
“I would be grateful to know the date of the review and if the proposed changes to IR35 will be suspended pending the outcome.”
Andrew Bowie echoed this sentiment and also sent a letter to the Chancellor. He is a Scottish Conservative and Unionist Party politician and the MP for West Aberdeenshire and Kincardine. He wrote:
“If the proposed changes – making every medium and large sector private business responsible for setting the tax status of any contractor they use, were to come into effect, I would worry for the industry and its ability to attract the highly skilled workers they need. It is also predicted that changes could see a workers income reduced by up to 25%. Many of these workers are my constituents.”
He referred to pledges made on BBC Radio 4’s money box in which Javid vowed to review IR35 rules ahead of their introduction to the private sector. Javid stated:
“We’ve already said that we’re on the side of self-employed people. We will be having a review and I think it makes sense to include IR35 in that review.”
The pledge to review the IR35 reforms was, however, notably absent from the Conservative party’s manifesto, launched ahead of the general election.
In the Queen’s speech, delivered on 19 December 2019, there was no discussion of the upcoming reforms to off-payroll working or to plans to conduct a review into it so it remains to be seen whether or not there will be an extension to the current deadline. The advice to all affected is to continue to prepare for the upcoming IR35 reforms to come into force from 6 April 2020.
The CIPP wants to assist any individuals affected by the upcoming reforms to IR35 and help them to prepare for the changes. We offer a webinar which offers delegates the opportunity to ask any questions around topics that may be causing them concern. The next webinar will be held on 8 January 2020 and you can enrol here.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.